Life Insurance Policy Provisions, Options, and Riders
Which need does the fixed-amount option meet better than the fixed-period option?
Answer and explanation
Answer: A. Fixing the instalment matches an income need of a known size, such as a mortgage payment, and lets the duration fall where it may. A stated number of years suits fixed period, lifetime payments suit life income, and preserving capital suits interest only.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fixed amount option
More life insurance policy provisions, options, and riders questions
- What does a spendthrift clause in a life insurance settlement do?
- What does a waiver of cost of insurance rider cover on a universal life policy during total disability?
- What does an accidental death benefit rider generally provide when the insured dies from a covered accident?
- What does an owner gain from paid-up additions that the one-year term dividend option does not provide?
- What does the automatic premium loan provision do at the end of the grace period?
- What does the cash surrender nonforfeiture option give an owner who ends a permanent policy?
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