Life Insurance Policies
A surgeon aged forty expects high earnings for twenty years and then a much lower income. Which whole life form fits?
Answer and explanation
Answer: D. Matching the payment period to the earning period leaves the client with paid-up cover when income falls. Continuous premium extends payments into the lean years, a single premium may be beyond present means, and term expires without value.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, limited payment suitability
More life insurance policies questions
- 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?
- Which combination of features most clearly signals variable universal life rather than ordinary whole life?
- Which description best distinguishes indexed universal life from variable universal life?
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