- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Review Answers
Life insurance is a contract that an individual makes with an insurance company that provides chosen beneficiaries compensation upon the individual’s death. You should have life insurance in order to provide for those you love upon an untimely death.
According to the LDS Handbook for Families, the minimum amount of life insurance that an individual should have is the amount necessary to pay for such things as a funeral, taxes, mortgage on the home, car payments, and other debts.
The two methods of determining how much life insurance an individual will need are (1) the earnings multiple approach and (2) the needs approach.
Term insurance is a type of life insurance that provides protection that is valid over a specific term or time period. The three types of term insurance are (1) renewable term, (2) decreasing term, and (3) convertible term.
Permanent insurance is a type of life insurance in which the premiums are divided between death protection and savings. The four types of cash-value insurance are (1) whole life, (2) variable life, (3) universal life, and (4) variable universal life.
