Life Insurance Policy Provisions, Options, and Riders
What is fixed and what varies under the fixed-amount settlement option?
Answer and explanation
Answer: B. The beneficiary names the instalment, and the proceeds with interest are paid out at that level until they run out, so the duration is the variable. Fixing the period instead is the fixed-period option, and a lifetime guarantee is the life income option.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fixed amount option
More life insurance policy provisions, options, and riders questions
- What does a spendthrift clause in a life insurance settlement do?
- What does a waiver of cost of insurance rider cover on a universal life policy during total disability?
- What does an accidental death benefit rider generally provide when the insured dies from a covered accident?
- What does an owner gain from paid-up additions that the one-year term dividend option does not provide?
- What does the automatic premium loan provision do at the end of the grace period?
- What does the cash surrender nonforfeiture option give an owner who ends a permanent policy?
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