Life Insurance Policy Provisions, Options, and Riders
How do reduced paid-up and extended term differ in what each keeps from the original policy?
Answer and explanation
Answer: B. Reduced paid-up buys a smaller amount of permanent insurance that lasts for life with no further premiums, while extended term keeps the original face amount for a limited term. Both end premium payments, so the trade is between the amount of cover and how long it lasts.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, reduced paid-up and extended term
More life insurance policy provisions, options, and riders questions
- A cost of living rider is attached to a life policy. What does it do as an inflation index rises?
- A dividend declared happens to exceed the premium next falling due under this option. What ordinarily follows?
- A New York beneficiary asks the insurer to stop the owner from changing the designation. What is the position?
- A New York owner assigns a life policy as collateral for a loan. What does the assignment achieve?
- A payee elects a life income with a ten year period certain and dies in the eighth year. What does the insurer do?
- A policy designates 'my children' as beneficiary and a child is born after the policy is issued. How is that child treated?
621 New York questions like this one.
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