Types of Policies
How does the death benefit of an increasing term rider or policy change over time?
Answer and explanation
Answer: B. Increasing term coverage features a face amount that increases over time, often used as a return-of-premium or cost-of-living rider.Source: NAIC Term Life Guide — PDF page 4, Increasing Term
More types of policies questions
- What feature of a Market Value Adjusted (MVA) annuity alters early surrender values based on interest rate shifts?
- What happens if a universal life policy's cash value is insufficient to cover monthly mortality and administrative deductions?
- What happens to the cash value in a decreasing term life policy as the face amount approaches zero?
- What happens to the cost of an increasing term benefit as the insured ages and the coverage amount rises?
- What immediate cash feature distinguishes a single-premium whole life policy from an ordinary whole life policy?
- What indexed feature defines a Fixed Indexed Annuity (FIA)?
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