Week Three Quiz Essay

656 Words Jan 25th, 2015 3 Pages
Week Three:

1. Why should you never designate minor children as your primary beneficiary, but instead put assets intended for them into a trust?
a. Because they cannot be trusted to manage their own money
b. Because their guardians will likely mismanage the funds
c. Because minors cannot legally inherit money
d. Because the money will be held in probate court for over a year

2. Having a durable power of attorney for health care (PoA) in place is a good idea in the event that
a. your physician may recommend medical treatments that you are not able to afford
b. your family is opposed to some of your wishes or is divided about them
c. you only want certain doctors to treat you in a medical emergency
d. you want the PoA to remain in
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Comprehensive
d. Replacement

7. Life insurance is meant to
a. be the most cost-effective way to protect you and your loved ones for your entire life and after your death
b. provide a vehicle for investing, in addition to insuring your life and protecting those who are financially dependent on you
c. protect those who are financially dependent on you should you pass away before you have had time to build your assets
d. be a cost effective-way to pay money to your beneficiaries without having to pay any income tax on the death benefit

8. In general, how long should you carry insurance to protect your children?
a. Until your youngest child is 18
b. Until you are age 50
c. Until your youngest child is 23
d. For your entire life

9. When it comes to insurance, if you rent your house or apartment, you should
a. purchase insurance that covers both the physical building and your possessions, just as you would if you were a homeowner
b. purchase insurance that covers the actual cost of your possessions but does not cover the building structure
c. make sure that your landlord has insurance that covers the building and your possessions
d. purchase insurance that covers the replacement cost of your possessions but does not cover the building structure

10. Which of the following is a good way to save on your homeowner’s or renter's insurance?
a. Bundle your auto and homeowner's or renter's policies with the same insurer
b. Reduce coverage on your home, but continue to

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