What factors should be considered when selecting a life insurance policy?
What will be an ideal response?
Answer: Select an agent who will work for you; that is, meet your needs, not his or hers. Choose a company that is highly rated by one of the independent rating firms such as A.M. Best. Be sure to compare costs and choose a policy with a low cost index. Carefully select the amount of life insurance needed, the type of policy, and the method of premium payments.
Make sure the beneficiary designation is correct. Choose between using an advisor (agent) or buying direct from a company.
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From a budgeting view, which of the following statements is not true concerning variances?
A) A favorable expense variance means the budgeted amount was more than actual. B) Cumulative variance = current month's variance + variances of previous months. C) Ideally, cumulative variances for the year will equal zero. D) Ideally, cumulative variances for the year should have a positive value.
You have just obtained a mortgage to purchase your home. The ________ that you paid to obtain the loan are charges that must be paid at the time of the sale and serve to raise the effective cost of the loan
A) points B) closing fees C) escrow fees D) security fees E) none of the above