Types of Policies
Two business owners need one life policy to provide funds when the first of them dies. Which policy trigger is required?
Answer and explanation
Answer: C. Joint life first-to-die coverage pays when the first joint insured dies, which matches a need for funds at the first owner’s death. Survivorship coverage waits for the last death, and surrender or retirement is not the requested death-benefit trigger.Source: NAIC — Experience Reporting Formats VM-51 — VM-51 page 20, Life Insurance Product Type Code 101 — First to die term plan
More types of policies questions
- What indexed feature defines a Fixed Indexed Annuity (FIA)?
- What is an immediate annuity (SPIA) designed to do upon single-premium purchase?
- What key feature distinguishes a variable annuity from a fixed annuity?
- What primary guarantee is provided to the owner of a fixed annuity contract during the accumulation phase?
- What primary need is decreasing term life insurance specifically designed to cover?
- What surrender charge feature is common in fixed annuity contracts during early policy years?
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