Life Insurance Policies
A married couple expect estate taxes to fall due only after both have died. Which policy matches that liability?
Answer and explanation
Answer: C. Where the marital deduction defers the tax to the second death, a survivorship policy delivers cash at precisely that moment and at a lower premium than separate policies. Paying at the first death provides the money years before it is needed.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, survivorship life uses
More life insurance policies questions
- What stays level throughout the term of a level term life insurance policy?
- 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?
- Which client is level premium term suited to?
- Which combination of features defines a variable universal life (VUL) contract?
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