Types of Policies
A buyer wants permanent coverage whose credited values respond more quickly to current interest-rate changes than traditional whole life. Which product is the closest match?
Answer and explanation
Answer: D. Interest-sensitive whole life allocates investment earnings to reflect current interest-rate fluctuations more promptly than traditional whole life.Source: New York State Department of Financial Services — Life Insurance Information for Consumers — Interest Sensitive Whole Life
More types of policies questions
- A variable universal life owner pays only minimal premiums while the selected separate-account options lose value. Monthly cost-of-insurance and expense deductions continue. What is the main near-term risk if the owner makes no change?
- A variable universal life policy keeps the same stated premium plan and mortality charge schedule, but the owner's selected stock subaccount falls sharply. Which policy element is directly changed first by that investment performance and can later affect whether charges can be paid?
- A variable whole life owner reallocates policy value among available stock and bond choices. Which account description should the producer use?
- A worker buys an annuity at age 45 and plans to begin income at age 65 after years of tax-deferred accumulation. Which classification best fits?
- An annual renewable term policy keeps the same death benefit for each one-year term. What normally happens to its premium from year to year?
- An annually renewable term policy is renewed for another year. What happens to the premium and to the evidence of insurability?
590 Texas questions like this one.
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