What Friends Character Is Most Like You?

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. Please attempt all questions. 1. In addition to life insurance's primary use as an income replacement for loved ones, many people wish to use it for their funeral and final expenses. Had Ross really died doing what he loved, watching blimps, then insurance would’ve come in handy. These funeral and final expenses include: A. Your funeral and outstanding bills only B. Your funeral and probate costs only C. Your funeral, probate costs, outstanding bills or debts, and taxes D. Only your funeral and taxes need to be paid 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! 2. Term insurance is designed to cover a specific period such as 10 or 20 years. Permanent policies, unlike term policies, are designed to last your lifetime (no "we were on a break!" here!). A primary reason to consider term over permanent insurance is: A. You never need permanent insurance B. Permanent policies are only for old people C. Term requires no medical exam D. Term is more affordable, especially for young people 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… 3. The beneficiaries of an insurance policy receive the proceeds following the death of the insured. (How else do you think Monica can afford that crazy huge apartment in Greenwich? Thanks, Grandma!) A significant feature of insurance death benefits is: A. It is only taxable by your state of residence, not the federal government B. Life insurance death benefits are generally tax-free C. It is not taxable by your state, only the federal government D. You only pay tax on the amount you spend, much like sales tax 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. 4. The principles of insurance have been in use for centuries. Life insurance was introduced in the U.S. in the 1760s. The basic premise of insurance is: A. Life’s unpredictable, you gotta hedge B. Not taking too big a chance with the future C. You never know when your number’s up D. Distributing risk so that no one bears it alone 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! 5. Insurance increases in cost as you age because mortality increases. Term insurance provides coverage for a set period at a level premium. When comparing a 10-year term policy to a 20-year term policy from the same company you should expect to see: A. The ten-year term policy will be more expensive per year B. The premiums will be the same, only the term is different C. The premium for the twenty-year term policy will be the same as for the ten year-term policy during the first ten years D. The annual cost of the twenty-year term policy will be higher per year, but the premium is guaranteed for twenty years as opposed to ten 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! 6. Many people purchase life insurance to provide for loved ones if they die prematurely. Common reasons people consider life insurance are to: A. Provide college funding for dependents B. Pay their funeral and final expenses C. Leave resources for the surviving family D. All of the above 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! 7. Insurance death benefits can be used to fund a family’s goals and maintain the standard of living they enjoyed during your lifetime. When viewing insurance from a risk perspective: A. It’s always better to save your money than it is to buy insurance B. Life is uncertain, insuring doesn’t change anything C. Life insurance can reduce the risk of financial hardship for your survivors D. Life insurance has nothing to do with risk 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! 8. Since term insurance lasts for a set period, and not forever, there are cases, such as funding estate taxes, where permanent policies may be more appropriate. Which of the following are not appropriate uses of term insurance: A. Leaving funds for your children’s education B. Paying off your mortgage C. Providing living expenses for your survivors D. These are all appropriate uses of term insurance Explanation: All of the items described in the first three choices are temporary needs — a perfect fit for term insurance.