Life Insurance Policy Provisions, Options, and Riders
A young couple with three children want the whole household covered at modest cost under one contract. Which rider fits?
Answer and explanation
Answer: C. The family term rider is written for exactly this case, putting the spouse and all the children under one attachment for a single premium. Guaranteed insurability, accidental death and return of premium riders answer quite different needs.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, family term rider suitability
More life insurance policy provisions, options, and riders questions
- Why is a dividend on a participating life policy generally not taxable to the owner?
- Why is naming a minor directly as beneficiary of a life policy usually discouraged?
- Why might an owner name a trust as the beneficiary of a life insurance policy?
- A beneficiary elects a fixed period of ten years and dies in year six. What becomes of the remaining instalments?
- A beneficiary receiving instalments under a spendthrift clause offers those future payments as security for a loan. What is the position?
- A child covered by a children's term rider reaches the age at which the cover ends. What is normally available?
621 New York questions like this one.
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