Life Insurance Policy Provisions, Options, and Riders
Which owner would the one-year term dividend option suit?
Answer and explanation
Answer: D. Maximising the death benefit is exactly what a year of term insurance does with a dividend. A withdrawable fund points to accumulation at interest, lowering cost points to reduction of premium, and ending premiums is a nonforfeiture question.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, one-year term dividend option
More life insurance policy provisions, options, and riders questions
- How does an automatic premium loan come to apply to a policy?
- How does the interest only settlement option work?
- How does the reduction of premium dividend option work?
- How does waiver of cost of insurance differ in effect from waiver of premium on a fixed whole life policy?
- How is a children's term rider ordinarily priced and applied?
- How is the amount of cover under a family term rider usually expressed?
621 New York questions like this one.
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