The course: Risk Management & Insurance.

1. In the context of life insurance policies, which of the following equations is incorrect?

A. Death protection = Death benefit - Cash value B. Potentially taxable = Receipt - Net cost C. Cash Value policies = Term insurance + Savings plan D. Death protection = Death benefit

FYI, the answer is not B

2. When Kathy buys a single-premium whole life policy, she

A. makes the same premium payment each year for her whole life and is covered for her whole life. B. makes the same premium payment each year of the policy period. C. makes the same premium payment each year for a limited number of years and is then covered for her whole life. D. pays the entire premium in a lump sum when the policy is issued and is then covered for her whole life.