File Info
| Exam | Certified Trust and Financial Advisor |
| Number | CTFA |
| File Name | Financial.CTFA.Pass4Sure.2018-08-24.400q.tqb |
| Size | 1 MB |
| Posted | Aug 24, 2018 |
| Download | Financial.CTFA.Pass4Sure.2018-08-24.400q.tqb |
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Demo Questions
Question 1
Life insurance is intangible. You can’t see, smell, touch or taste its benefits and those benefits mainly happen when someone is died. However, life insurance does have some important benefits that should not be ignored in the financial planning process. Which of the following is out of those benefits?
- Protection from debtors
- Financial protection from dependents
- Vehicle for savings
- Interest benefit
Correct answer: BC
Question 2
A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by some selected number is called:
- Multiple of earnings method
- Need analysis method
- Tax saving method
- Whole life coverage
Correct answer: A
Question 3
According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance coverage should be equal to 5 to 10 times your current income. For example, if you currently earn $70,000 a year, using the multiple of earning method then you need between:
- $300,000 and $700,000 life insurance
- $400,000 and $700,000 life insurance
- $390,000 and $800,000 life insurance
- $350,000 and $700,000 life insurance
Correct answer: D
