Types of Policies
A couple wants one policy whose death benefit becomes payable only after both insureds have died. Which structure meets that objective?
Answer and explanation
Answer: D. Survivorship life is a second-to-die design, so the benefit is triggered by the last insured’s death. First-to-die pays earlier, and the individual term choices do not create a single last-death trigger.Source: NAIC — Experience Reporting Formats VM-51 — VM-51 page 20, Life Insurance Product Type Code 102 — Second to die term plan
More types of policies questions
- What unbundled components characterize a universal life insurance contract?
- When does a joint life (first-to-die) policy pay its death benefit?
- When does a survivorship life (second-to-die) policy pay its death benefit?
- When is a second-to-die life policy’s death benefit triggered?
- Which combination of features defines a variable universal life (VUL) contract?
- Which combination of features most clearly signals variable universal life rather than ordinary whole life?
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