Life Insurance Policies
A client has a lump sum from an inheritance and wants to leave the largest possible sum to heirs, with no further payments.
Answer and explanation
Answer: B. A single premium turns available capital into an immediately paid-up death benefit larger than the sum invested, with no further obligation. The other forms require continuing payments or provide only temporary cover.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, single premium suitability
More life insurance policies questions
- How is the amount of credit life insurance limited?
- How is the premium for credit life insurance ordinarily paid?
- How many death benefits does a joint life, first to die, policy pay over its lifetime?
- Is a single premium whole life policy issued without underwriting?
- Two business partners purchase a joint life policy to fund a buy-sell agreement. Partner A dies. What happens to the policy after the death benefit is paid?
- Two business partners want the survivor to be able to buy out the deceased partner's interest. Which design serves that?
621 New York questions like this one.
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