Types of Policies
When is a second-to-die life policy’s death benefit triggered?
Answer and explanation
Answer: B. Second-to-die, or survivorship, coverage is triggered by the death of the last insured. Retirement, one missed payment, or cash-value growth is not the defining death-benefit event.Source: NAIC — Experience Reporting Formats VM-51 — VM-51 page 20, Life Insurance Product Type Code 102 — Second to die term plan
More types of policies questions
- How does the premium for a joint life (first-to-die) policy compare to buying two separate individual policies of the same face amount?
- How is interest credited to cash values in an interest-sensitive whole life policy?
- How is single-premium whole life ordinarily funded?
- How is the payout phase (annuitization) structured under a straight life income annuity settlement option?
- If current interest rates exceed expectations in an interest-sensitive whole life policy, what options may the insurer offer the owner?
- If the reference equity index suffers a severe negative loss (-20%) during a policy year, what protects the equity-indexed policyowner's cash value?
590 Texas questions like this one.
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