Types of Policies
A joint policy insures two partners and pays its death benefit when either partner is the first to die. How should the policy be classified?
Answer and explanation
Answer: A. A joint life first-to-die policy pays at the first insured death. Survivorship waits for the second death, while the annuity and individual term choices do not describe a single contract triggered by the first of two insured deaths.Source: NAIC — Experience Reporting Formats VM-51 — VM-51 page 20, Life Insurance Product Type Code 101 — First to die term plan
More types of policies questions
- What primary guarantee is provided to the owner of a fixed annuity contract during the accumulation phase?
- What primary need is decreasing term life insurance specifically designed to cover?
- What surrender charge feature is common in fixed annuity contracts during early policy years?
- What type of annuity is purchased with a single lump-sum payment and defers payouts until a specified future date?
- What type of annuity permits the owner to make periodic premium contributions of varying amounts over time before payouts begin?
- What unbundled components characterize a universal life insurance contract?
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