Life Insurance Basics
What is the essential difference between term and permanent life insurance?
Answer and explanation
Answer: A. Term is pure protection for a defined period and expires without value, while permanent insurance is designed to stay in force for life and accumulates cash value. Participation and distribution channel are unrelated to the distinction.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, permanent versus term
More life insurance basics questions
- May a New York producer point to the Life Insurance Company Guaranty Corporation as a reason to buy?
- On what must a recommendation under Regulation 187 be based?
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Two partners agree that on the death of either, the survivor will buy the deceased's share. How does life insurance support that?
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
- What determines the effective date of coverage where no premium accompanies the application?
621 New York questions like this one.
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