Life Insurance Policies
Why does survivorship life cost less than an individual policy of the same face amount on either insured?
Answer and explanation
Answer: B. The expected time to claim is longer when two lives must end, so the insurer discounts the cost accordingly. Premiums generally continue after the first death, the contract is not cancellable, and these policies do build cash value.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, survivorship life cost
More life insurance policies questions
- Under IRC § 7702 corridor rules, what must an insurer do if cash value growth in a universal life policy threatens to breach the statutory life insurance definition ratio?
- What administrative role does a group plan sponsor typically undertake?
- What are the usual purposes of buying a modest policy on the life of a minor?
- What characterises a creditor group life plan?
- What does a group underwriter reassess when a plan comes up for renewal?
- What does a life paid-up at sixty-five policy provide?
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