Life Insurance Policy Provisions, Options, and Riders
What follows from naming the insured's estate, rather than a person, as the beneficiary of the policy?
Answer and explanation
Answer: A. Proceeds payable to the estate join the probate estate, so they are delayed by administration and reachable by the decedent's creditors, which is what naming a person avoids. The income tax exclusion is not lost, and distribution follows the will rather than an equal split.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, estate as beneficiary
More life insurance policy provisions, options, and riders questions
- A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
- A spouse rider is about to end at the stated age. What does the conversion feature ordinarily allow?
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
- A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
- A widow wants income now but the capital preserved for her children. Which settlement option answers that?
- A young couple with three children want the whole household covered at modest cost under one contract. Which rider fits?
621 New York questions like this one.
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