Life Insurance Basics
A family will need income for the twelve years until the youngest child finishes school. What is that period usually called?
Answer and explanation
Answer: D. The dependency period is the span during which children rely on the family's income, and planning covers it separately from the surviving spouse's later needs. Elimination and contestable periods belong to disability and contract law, and accumulation describes an annuity phase.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, planning for income needs
More life insurance basics questions
- A closely held corporation funds a buy-sell agreement so that the company itself buys a deceased shareholder's stock. What is this plan called?
- A company buys life insurance on its chief engineer to protect against the financial loss if she dies. Who is the owner, premium payer, and beneficiary?
- A company insures its chief engineer, paying the premiums and naming itself beneficiary. What is the purpose of that arrangement?
- A parent buys life insurance so the family can keep the house if he dies. Which personal use is that?
- A planner totals a family's final expenses, mortgage balance, and income needs, then subtracts savings and Social Security benefits. Which method is being used?
- A producer adopts the title 'Certified Senior Retirement Specialist', which no organisation confers. How does Regulation 199 treat that?
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