Types of Policies
How does a life annuity with 10-year period certain settlement option protect beneficiaries?
Answer and explanation
Answer: C. Life with period certain pays for life, but guarantees a minimum payment duration (e.g. 10 years) to a beneficiary if early death occurs.Source: NAIC Annuity Buyer's Guide — PDF page 5, Life with Period Certain
More types of policies questions
- In variable life insurance, what most directly causes the policy’s cash value to fluctuate?
- Most modern fixed annuity contracts allow what penalty-free withdrawal percentage annually during the surrender charge period?
- To what external benchmark is the interest crediting rate of an equity-indexed life insurance policy tied?
- Two business owners need one life policy to provide funds when the first of them dies. Which policy trigger is required?
- Two business partners purchase a joint life policy to fund a buy-sell agreement. Partner A dies. What happens to the policy after the death benefit is paid?
- Under a fixed indexed annuity’s basic index-crediting structure, what interest is added for an index term with a negative result?
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