Life Insurance Policies
Is a single premium whole life policy issued without underwriting?
Answer and explanation
Answer: D. The insurer is still accepting mortality risk, so the proposed insured is underwritten in the ordinary way whatever the funding pattern. Full funding removes the lapse risk, not the mortality risk.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, single premium underwriting
More life insurance policies questions
- How does annually renewable term differ from a ten year level term policy?
- How does fixed indexed life differ from variable life in where the risk falls?
- How does group credit life differ from individual credit life?
- How does level term differ from decreasing term in the pattern of benefit and premium?
- How does the cash value of a continuous premium whole life policy behave over time?
- 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?
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