Life Insurance Policies
How does the premium for a joint life policy compare with two separate policies on the same lives?
Answer and explanation
Answer: A. The insurer expects to pay one face amount rather than two, so the joint contract costs less than two individual policies. Both lives are underwritten, and combining them does not remove that step.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, joint life pricing
More life insurance policies questions
- An owner aged fifty takes a loan against a single premium whole life policy. What is the tax result?
- An owner converts a term policy and may choose attained age or original age. What is the trade?
- An owner of continuous premium whole life wants to pay less in a difficult year. What does the contract permit?
- An owner wishes to move the value of an old policy into a single premium whole life contract. What preserves the deferral?
- At what premium is the individual policy issued on conversion from group cover?
- Does a level premium term policy accumulate cash value the owner may reach?
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