29. The primary purpose of a life insurance plan is: a. risk assumption of the insured in the event of his/her untimely death. b. to protect the dependents of the insured from financial loss in the event of his/her untimely death. c. loss prevention of the insured in the event of his/her untimely death. d. loss control of the insured from financial loss in the event of his/her untimely death. e. risk avoidance of the insured in the event of his/her untimely death. 30. A life insurance policy structured so that the death benefits are paid directly to a named beneficiary means that a. the life proceeds are paid directly to named beneficiaries after payment of state or federal income taxes b. the cash benefits from your life insurance policy cannot be claimed by creditors c. the life proceeds are invested as premium for the life insurance of the beneficiary d. the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes e. the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably 31. The single most valuable technique in personal risk management to assist an individual in determining how much life insurance is needed is: a computing the Human Life Value. b. using the probability of death each year, prevailing interest rates and assumed inflation rates to find the discounted present value of a future income stream. c. assessing the family's total economic needs and subtracting the financial resources available to meet those needs. d. estimating the sum of money which, when paid in instalments, will produce the same income as the person would have earned, after deducting assumed amounts for taxes and personal maintenance expenses. e using the multiple-of-earnings method adjusted for occupation. 32. Using the approach is the most accurate method to determine life insurance needs. a. human life value b. multiple earnings risk assessment d. economic identification e needs analysis 33. is a short-term investment activity. a. Buying life insurance b. Buying bonds c. Speculating in common stock de Investing in common stock e. Saving 34. The most important investment prerequisites are: a. adequate income and savings. b. adequate income and insurance. c. adequate insurance and liquidity. d a n investment plan and professional advice. e. consistency and risk awareness