Life Insurance Policies
How does the cash value of a twenty payment whole life policy compare with that of continuous premium whole life issued at the same age?
Answer and explanation
Answer: C. Larger premiums concentrated into twenty years build the reserve faster, so the value exceeds that of the continuous premium form well before the paid-up date. Both reach the face amount at maturity.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, limited payment and cash value
More life insurance policies questions
- Why is the premium for a $1,000,000 survivorship life policy lower than for a $1,000,000 joint first-to-die policy on the same two lives?
- Within what period must a member apply to convert group life insurance to an individual policy in New York?
- A 20-year term policy allows conversion only during its first 12 years. What happens to the conversion privilege after year 12?
- A 20-year term policy permits conversion only during its first 12 years. Which statement correctly describes the feature?
- A client has a lump sum from an inheritance and wants to leave the largest possible sum to heirs, with no further payments.
- A client holds employer-provided level term cover and asks whether personal term insurance is still needed.
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