We know you’ve thought about it before: Which Friends character are you really? Sure, everyone wants to be a Rachel or a Chandler, but in reality, you’re probably more of a Ross. Take our life insurance quiz and find out what your life decisions say about you as a person, but more importantly, if you really are a Joey or not.
Explanation: Funeral and final expenses include the cost of a funeral (or cremation), probate or other court costs, outstanding bills, debts, and taxes. It never ends, even after you die!
Explanation: Term insurance is often purchased instead of permanent insurance because of affordability. Often people at the beginning of their earning years cannot afford the premiums of permanent insurance at the coverage levels they are looking for. Especially if you’ve just been fired from Days of Our Lives…
Explanation: Life insurance death benefits are not included in income for tax purposes. Proceeds may be included in a decedent’s gross estate for estate tax purposes. Interest generated prior to distribution would generally be taxable.
Explanation: Insurance spreads risk from an individual to a group – instead of each member of a group assuming 100% of the risk individually, each member of the group assumes a small amount of risk (premium) in exchange for shared protection (the coverage). That’s exactly what the Friends would have wanted — they share just about everything else!
Explanation: The annual cost of a 20-year term policy would generally be higher than a 10-year term policy issued by the same company. This is due to the higher mortality of the second 10 years being averaged into the annual premium. Guess that’s why they stopped shooting the show before any of the Friends hit their mid-thirties — outlook not so good!
Explanation: Life insurance creates an immediate estate which can be used by the beneficiaries to meet a variety of needs. Covering funeral and final expenses, providing funds for future goals, and providing resources to maintain the family’s on-going standard of living are all common reasons to purchase life insurance. Just make sure you aren’t also leaving behind an unreasonable number of Sweet’n’Low packets!
Explanation: Life insurance is a means of reducing financial risk for the beneficiaries of the policy. Insurance companies are regulated and consistently provide resources which prevent financial hardship for their policyholder’s beneficiaries. Just make sure your loved one is really gone — we don’t want another Nana Gellar situation!
Explanation: All of the items described in the first three choices are temporary needs — a perfect fit for term insurance.