New York State Life Insurance Exam Questions Practice Question
If the insured dies within a specified time of policy issuance, which of the following refunds the purchase payments to the beneficiary?
Correct Answer: C
Rationale: The return of premium rider refunds purchase payments to the beneficiary if the insured dies within a specified period, ensuring financial protection for loved ones.
Option A, the other-insured rider, provides coverage for additional insured individuals but does not address refunds upon death. Option B, the disability income rider, offers income benefits if the insured becomes disabled, not a refund upon death. Option D, the return of cash value rider, pertains to returning accumulated cash value upon policy surrender or death, but not specifically to the purchase payments made. Thus, only the return of premium rider directly addresses the scenario presented.
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