Life Insurance Policy Provisions, Options, and Riders
How does the interest only settlement option work?
Answer and explanation
Answer: C. Under the interest only option the insurer retains the death benefit and pays the beneficiary the interest it earns at a guaranteed minimum rate, leaving the principal to be paid later to the beneficiary or to a further payee. The principal is neither consumed nor forfeited.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, interest only option
More life insurance policy provisions, options, and riders questions
- What delay may an insurer impose on paying a policy loan on a fixed policy?
- What distinguishes a class beneficiary designation from an individual beneficiary designation?
- What does a family term rider add to a base life insurance policy?
- What does a spendthrift clause in a life insurance settlement do?
- What does a waiver of cost of insurance rider cover on a universal life policy during total disability?
- What does an accidental death benefit rider generally provide when the insured dies from a covered accident?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.