Life Insurance Basics
What is the chief drawback for an employee of relying on group life insurance alone?
Answer and explanation
Answer: D. Group life is tied to the employment relationship, so leaving the job ends the cover subject to a conversion right at individual rates. Members do name their own beneficiaries, the cover is not limited to accidents, and no periodic evidence is required.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, group versus individual
More life insurance basics questions
- Whose interests may a producer weigh when making a recommendation under Regulation 187?
- Why can the human life value approach and the needs approach produce different amounts for the same client?
- Why does paying premium monthly usually cost more in total than paying annually?
- Why does paying premiums monthly cost more over a year than paying annually?
- Why is a copy of the application attached to the life insurance policy when it is issued?
- Why is a variable life policy regulated by more than the state insurance department?
621 New York questions like this one.
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