Life Insurance Policies
What are the usual purposes of buying a modest policy on the life of a minor?
Answer and explanation
Answer: D. Juvenile policies are bought for final expenses and to secure future insurability at a young age and low cost, sometimes with a payor benefit rider. A child has no income to replace, and dividends are not guaranteed.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, uses of juvenile insurance
More life insurance policies questions
- Why do group plans fix the amount of each member's cover by a formula rather than by individual choice?
- Why do group underwriting requirements impose a minimum level of participation?
- Why do group underwriting requirements set a minimum number of members?
- Why do the rules on eligible sponsors insist that the group exist for a purpose other than insurance?
- Why does a limited payment whole life policy need testing against the modified endowment contract rules?
- Why does level term cost less than whole life for the same face amount at the same age?
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