New Jersey Life Insurance Exam Practice Question
Second-to-die Life Insurance Policies are useful in estate planning because they
Correct Answer: B
Rationale: Second-to-die life insurance policies are designed to pay out a death benefit upon the passing of the second insured individual, making them particularly beneficial for estate planning.
Option B is accurate as these policies can provide funds to cover estate taxes, ensuring that heirs can manage financial obligations without liquidating assets.
Option A is incorrect; these policies are not primarily intended for retirement savings.
Option C misrepresents the function of these policies, as they do not redistribute premium obligations.
Option D is misleading as well; while they may cover funeral costs, their primary purpose is not limited to funeral or burial insurance.
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