Types of Policies
A buyer wants lifetime life insurance funded by one lump-sum payment and wants cash value available immediately. Which policy fits?
Answer and explanation
Answer: B. Single-premium whole life is a limited-payment whole life policy purchased with one lump sum; it provides lifetime protection and immediate cash value.Source: National Association of Insurance Commissioners — Life Insurance — Whole Life Insurance > Types of whole life insurance > Single premium whole life insurance
More types of policies questions
- Under IRC § 7702 corridor rules, what must an insurer do if cash value growth in a universal life policy threatens to breach the statutory life insurance definition ratio?
- What benchmark rate is used in variable annuity payout calculations to determine whether monthly annuity payment amounts increase or decrease?
- What benefit does a joint and survivor annuity payout option provide to two annuitants (such as a married couple)?
- What characterizes a deferred annuity contract during its accumulation phase?
- What defines the death benefit and premium structure of a standard level term life policy?
- What external measure is commonly used to determine interest credits in indexed universal life?
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