Life Insurance Policies
Does the index credit on a fixed indexed life policy include dividends paid on the shares in the index?
Answer and explanation
Answer: D. Index crediting is normally based on the price change of the index, so dividends on the constituent shares are not passed through, which is one reason the credit trails a direct investment. No separate equivalent is added.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, indexed life and dividends
More life insurance policies questions
- 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?
- Which elements does a continuous premium whole life policy guarantee?
- Which event gives rise to the conversion right under section 3220?
- Which is the most common type of group life plan sponsor?
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