Life Insurance Basics
A young professional with modest savings buys a large policy. Which personal use does that serve?
Answer and explanation
Answer: C. Estate creation uses the death benefit to bring into existence an estate the insured has not had time to build. Conservation protects an estate that already exists, accumulation describes value building inside the contract, and liquidity is about access to cash.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, estate creation
More life insurance basics questions
- What use of a senior-specific certification does New York's Regulation 199 prohibit?
- When is a statement of good health obtained on delivery of a life insurance policy?
- When may an insurer disclose an applicant's personal information without a specific authorization?
- Where are the assets supporting a variable life policy held, and who bears the investment risk?
- Which characteristic of the granting organisation makes a senior designation a prohibited one under Regulation 199?
- Which deductions are made from gross earnings when computing a human life value?
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