Your Policytype™ For Life Insurance

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| By Gtstraka
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Gtstraka
Community Contributor
Quizzes Created: 1 | Total Attempts: 50
| Attempts: 50
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  • 1/10 Questions

    What is your annual taxable household income?

    • Less than $100,000
    • $100,000 to $250,000
    • $250,000 to $500,000
    • Above $500,000
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About This Quiz


Let our unbiased PolicyType™ algorithms guide you towards the types of life insurance you should be considering.

Your Policytype For Life Insurance - Quiz

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  • 2. 

    How long would you need to live before your beneficiary(s) no longer needed the life insurance proceeds?

    • Less than 10 years

    • 10-20 Years

    • Over 20 Years

    Correct Answer
    A. Less than 10 years
    Explanation
    The correct answer, "Less than 10 years," suggests that the beneficiary(s) will no longer need the life insurance proceeds within a relatively short period of time. This implies that the beneficiary(s) have either become financially stable or have found alternative means of financial support within this timeframe. It is important to consider factors such as the beneficiary(s)' age, financial situation, and any potential changes in circumstances that may affect their need for the life insurance proceeds.

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  • 3. 

    Out of these three possibilities, which one is LEAST important to you?

    • Keeping the monthly out of pocket costs as low as possible

    • Having options to continue the coverage should my health become a problem

    • The financial stability of the insurance company

    Correct Answer
    A. Keeping the monthly out of pocket costs as low as possible
    Explanation
    The given answer suggests that the least important factor out of the three possibilities is keeping the monthly out of pocket costs as low as possible. This implies that the individual values the other two factors more. They prioritize having options to continue the coverage in case of health issues and the financial stability of the insurance company over minimizing their monthly expenses. This indicates that the individual is willing to pay higher monthly costs if it ensures their coverage and the stability of the insurance provider.

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  • 4. 

    What percentage of your income each month is salary or guaranteed?

    • 100%

    • 75% to 100%

    • 50% to 75%

    • Less than 50%

    Correct Answer
    A. 100%
    Explanation
    The answer is 100% because the question asks for the percentage of income that is salary or guaranteed. Since the question does not mention any other sources of income, it can be assumed that the entire income is derived from salary or guaranteed sources. Therefore, the percentage of income that is salary or guaranteed is 100%.

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  • 5. 

    What is your risk number? (or risk tolerance)

    • Less than 25 (Conservative)

    • 25-50 (Moderate)

    • 50-75 (Moderately Aggressive)

    • Above 75 (Aggressive)

    Correct Answer
    A. Less than 25 (Conservative)
    Explanation
    The given answer suggests that if someone's risk number or risk tolerance is less than 25, they are considered to have a conservative approach towards taking risks. This means that they prefer to have a lower level of risk in their investments and are more inclined towards preserving their capital rather than seeking high returns.

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  • 6. 

    Are you currently saving enough in your 401k to get the full matching employer contribution?

    • Yes

    • No

    • I don't get any match from my employer.

    • I don't have a retirement plan thru work.

    Correct Answer
    A. Yes
    Explanation
    The answer "Yes" indicates that the person is currently saving enough in their 401k to receive the full matching employer contribution. This means that they are contributing an amount to their retirement account that is equal to or greater than the amount that their employer is willing to match. By doing so, they are taking advantage of the full benefits offered by their employer's matching contribution program.

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  • 7. 

    How many months of expenses do you normally keep in cash reserves?

    • Less than one month

    • 1-2 months

    • 2-3 months

    • More than 3 months

    Correct Answer
    A. Less than one month
    Explanation
    Keeping less than one month of expenses in cash reserves suggests that the individual does not prioritize building up a substantial emergency fund. This could indicate a higher risk tolerance or a belief that they have other sources of readily available funds in case of unexpected expenses. However, it is generally recommended to have at least 3-6 months of expenses saved in cash reserves to provide a financial safety net in case of job loss, medical emergencies, or other unforeseen circumstances.

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  • 8. 

    How much debt as a percentage of your annual income do you currently carry? (Excluding mortgage)

    • Less than 10%

    • 10% to 25%

    • 25% to 50%

    • Above 50%

    Correct Answer
    A. Less than 10%
    Explanation
    The given answer suggests that the person carries a debt that is less than 10% of their annual income, excluding mortgage. This indicates that the individual has a relatively low level of debt compared to their income. They are likely managing their finances well and have a manageable amount of debt, which is generally considered favorable for financial stability.

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  • 9. 

    After 401k or other retirement plan contributions, how much do you save as a percentage of your monthly income? 

    • Less than 10%

    • 10% to 25%

    • 25% to 50%

    • More than 50%

    Correct Answer
    A. Less than 10%
    Explanation
    The correct answer is "Less than 10%". This means that the individual saves less than 10% of their monthly income after contributing to their retirement plan, such as a 401k. This suggests that they may not be prioritizing saving a significant portion of their income for other financial goals or emergencies. It is generally recommended to save at least 10-20% of your income for long-term financial security.

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  • 10. 

    What is your credit score?

    • Less than 600

    • 600-700

    • 700-800

    • Above 800

    Correct Answer
    A. Less than 600
    Explanation
    The answer "Less than 600" indicates that the credit score is below 600. Credit scores are numerical representations of an individual's creditworthiness, with higher scores indicating a lower risk of defaulting on loans. A score below 600 suggests a lower creditworthiness, which may make it more difficult for an individual to obtain credit or loans at favorable terms.

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Quiz Review Timeline (Updated): May 1, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • May 01, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 24, 2016
    Quiz Created by
    Gtstraka
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