Life Insurance Basics
What is the dependency period in planning for income needs?
Answer and explanation
Answer: D. The dependency, or readjustment and child-raising, period runs while children still need support, and the income need is usually highest then. The blackout period and retirement years that follow are planned for separately.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, income needs
More life insurance basics questions
- Why is a variable life policy regulated by more than the state insurance department?
- Why is the premium on a participating policy commonly higher than on a comparable nonparticipating policy?
- A business owner needs cash within days and holds a whole life policy with substantial value. How does liquidity serve here?
- A client has a large mortgage and wants the family to stay in the house. How is that reflected in the lump-sum calculation?
- A client needs the largest immediate death benefit the budget allows for the next fifteen years. Which is indicated?
- A closely held corporation funds a buy-sell agreement so that the company itself buys a deceased shareholder's stock. What is this plan called?
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