Life Insurance Basics
Which items are counted among the lump-sum needs a death benefit must cover?
Answer and explanation
Answer: C. Lump-sum needs are the one-time sums payable at or shortly after death, such as burial, medical bills, debts, the mortgage and a cash reserve. Ongoing living costs are the separate income needs, and future premiums and retirement income are not survivor obligations.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, lump-sum needs
More life insurance basics questions
- A parent buys life insurance so the family can keep the house if he dies. Which personal use is that?
- A planner totals a family's final expenses, mortgage balance, and income needs, then subtracts savings and Social Security benefits. Which method is being used?
- A producer adopts the title 'Certified Senior Retirement Specialist', which no organisation confers. How does Regulation 199 treat that?
- A variable whole life owner reallocates policy value among available stock and bond choices. Which account description should the producer use?
- A young professional with modest savings buys a large policy. Which personal use does that serve?
- An adverse underwriting decision rests on an HIV related test result. What does section 2611 require of the insurer?
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