Retirement and Other Insurance Concepts
A client wants survivors to receive income for thirty years and does not mind if the fund is exhausted at the end. Which approach fits?
Answer and explanation
Answer: C. Capital liquidation deliberately consumes the death benefit over a set period, so a smaller face amount supports a given income. Capital retention leaves the principal intact and needs a larger benefit.Source: NAIC Life Insurance Buyer's Guide — How much life insurance do you need: using principal and income
More retirement and other insurance concepts questions
- Under the human life value approach, what is being measured?
- Under TIC § 1131.051, what minimum participation requirement applies to a CONTRIBUTORY group life insurance plan where employees pay part of the premium?
- What conditions must be met for a Roth IRA distribution of earnings to qualify as 100% tax-free?
- What conversion right do covered children have when reaching the age limit under a family rider?
- What disclosure document must be delivered to a consumer prior to or at the time of purchase of a variable annuity under federal securities law?
- What does it mean for a worker to be fully insured for Social Security survivor benefits?
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