Life Insurance Policy Provisions, Options, and Riders
Why might an owner name a trust as the beneficiary of a life insurance policy?
Answer and explanation
Answer: A. A trust lets the owner decide in advance who receives what and when, with a trustee to administer the money, which is useful for minors and for staged distributions. Proof of death is still required, administration still has cost, and the terms cannot be rewritten after death.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, trusts as beneficiaries
More life insurance policy provisions, options, and riders questions
- An insured dies with a policy loan outstanding. How does the insurer settle the claim?
- An insured dies with dividends accumulated at interest still on deposit. What does the beneficiary receive?
- An insured exercises a guaranteed insurability option after adopting a child. Which premium basis generally applies to the newly purchased coverage?
- An insured wants a benefit that supplies income after a qualifying total disability rather than merely waiving policy charges. Which rider most directly fits?
- An insured with an accidental death and dismemberment rider loses the sight of both eyes in a covered accident. What does the rider ordinarily provide?
- An insured's health has deteriorated badly since issue. How does that affect the purchase of paid-up additions?
621 New York questions like this one.
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