Life Insurance Policy Provisions, Options, and Riders
A payee elects a life income with a ten year period certain and dies in the eighth year. What does the insurer do?
Answer and explanation
Answer: A. The period certain guarantees payments for the full ten years, so a successor payee receives the balance of that term, here two years. The guarantee runs from the start of the income, not from the payee's death, and it is paid as instalments rather than a lump sum.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, life income with period certain
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