New York State Life Insurance Exam Questions Practice Question
Upon the death of an insured individual, what does life insurance guarantee to deliver to the beneficiary?
Correct Answer: B
Rationale: Life insurance guarantees to deliver a specified sum of money to the beneficiary upon the insured individual's death. This payout, known as the death benefit, provides financial support during a difficult time.
Option A, an annuity, is not guaranteed by life insurance; it is a separate financial product that provides regular payments over time. Option C, a dividend, pertains to participating policies that may offer dividends but are not guaranteed and not the primary purpose of life insurance. Option D, a final expense fund, is not a standard feature of life insurance policies; while some policies may cover final expenses, they do not guarantee a specific fund for this purpose.
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