Pennsylvania Life and Health Insurance Exam Practice Question
A type of life insurance policy most commonly used by businesses for employees is:
Correct Answer: D
Rationale: A group policy is designed to cover multiple individuals under a single contract, making it ideal for businesses to provide life insurance for employees. This approach simplifies administration and often reduces costs.
An endowment policy (A) is primarily a savings product that pays out a lump sum after a specific term or upon death, not typically used for employee coverage. An equity indexed insurance policy (B) combines life insurance with investment growth linked to a stock market index, which is more complex and less common for employee benefits. A key person policy (C) insures critical employees, but it focuses on protecting the business from the loss of key individuals rather than covering all employees.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now