California Insurance License Exam Practice Test Practice Question
A husband and wife have a disabled child who is financially dependent upon them. The death of one parent would not result in financial disaster for the child, but the death of both parents would. Which policy should they purchase?
Correct Answer: C
Rationale: A second-to-die policy is ideal for this situation, as it pays out upon the death of the surviving parent, ensuring financial support for the disabled child after both parents pass away.
Option A, a juvenile policy, primarily covers a child's life and does not address the parents' financial responsibilities.
Option B, a first-to-die policy, provides a payout upon the first parent's death, which may not be sufficient if both parents are needed for the child's support.
Option D, a family protection policy, is broader but may not specifically focus on the unique needs of a disabled child in this scenario.
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