Life Insurance Policies
An owner of continuous premium whole life wants to pay less in a difficult year. What does the contract permit?
Answer and explanation
Answer: A. Traditional whole life has a fixed premium, so relief comes from borrowing against value, using a dividend or the automatic premium loan rather than from changing the schedule. Flexible premiums are a feature of universal life.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, whole life premium flexibility
More life insurance policies questions
- For what periods is level premium term commonly issued?
- How do a cap and a participation rate each limit the interest credited on an indexed policy?
- How do contributory and noncontributory group plans differ in participation requirements?
- How does a benefit schedule support group underwriting?
- How does annually renewable term differ from a ten year level term policy?
- How does fixed indexed life differ from variable life in where the risk falls?
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