1. In the family insurance market, people buy life insurance to protect survivors against what? a. the insured living too long b. the insured dying too soon c. natural disasters d. possible disability 2. In the family insurance market, what is life insurance usually purchased to replace? a. taking on risk b. long-term care c. replacing income lost from a disability d. the financial loss when a wage earner dies 3. For which of the following reasons do businesses often purchase life insurance? a. to start a new business b. to replace business income lost when a key employee dies c. to pay for the wedding expenses of executives' children d. to pay IRS liens 4. What should not be done with life insurance? a. sold strictly as an investment without regard to its death benefit component b. used by survivors to pay off existing debt c. used to pay ongoing living expenses of survivors d. used to pay for medical and funeral expenses of the deceased 5. What type of policy is different from a typical life insurance contract in that two lives are insured under the same policy? a. second-to-die b. participating c. nonparticipating d. whole life 6. What is the principal economic purpose of life insurance? a. to provide capital when needed at the insured's death b. to cancel policies c. to provide insurance protection on grandchildren d. to provide funding for alternate health care 7. What type of insurance is used to help businesses meet financial needs upon the death of a key employee? a. liability insurance b. life insurance c. casualty insurance d. medical insurance