Life Insurance Basics
Which measure of survivor protection asks what income the family loses at the insured's death?
Answer and explanation
Answer: A. Survivor protection is measured by the earnings the household would lose, capitalised over the years the dependants need support. Conservation, accumulation and liquidity address the estate and the policy's own values rather than lost income.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, survivor protection
More life insurance basics questions
- 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?
- A company buys life insurance on its chief engineer to protect against the financial loss if she dies. Who is the owner, premium payer, and beneficiary?
- A company insures its chief engineer, paying the premiums and naming itself beneficiary. What is the purpose of that arrangement?
- A family will need income for the twelve years until the youngest child finishes school. What is that period usually called?
- A parent buys life insurance so the family can keep the house if he dies. Which personal use is that?
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