Types of Policies
When does a joint life (first-to-die) policy pay its death benefit?
Answer and explanation
Answer: A. Joint life (first-to-die) pays the face amount upon the death of the first covered person, after which policy coverage terminates.Source: NAIC Life Insurance Guide — PDF page 6, Joint Life
More types of policies questions
- A joint policy insures two partners and pays its death benefit when either partner is the first to die. How should the policy be classified?
- A married couple buys a survivorship life policy for estate tax planning. The husband dies first. What happens to the policy?
- A one-year renewable term policy states that renewal rights end at age 70. The insured renews at age 69 and reaches 70 during that term. What should the producer explain?
- A parent needs a large fixed death benefit for the next 20 years and places no value on building cash value. Which product most directly fits?
- A policyowner surrenders a 20-year return-of-premium term policy in year 5 and expects the full end-of-term refund. What is the best response?
- A policyowner’s income varies and the owner wants to adjust premium timing within policy limits while keeping permanent coverage. Which product feature most directly addresses that need?
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