New York State Life Insurance Exam Questions Practice Question
Which of the following statements BEST describes a single premium cash value policy?
Correct Answer: A
Rationale: A single premium cash value policy is designed to be fully funded with a single upfront payment, making it permanently paid up without the need for further premiums.
Option B is incorrect because while it involves one premium, it does not necessarily exclude the need for evidence of insurability. Option C is misleading, as waiving future premiums due to disability typically applies to other policy types, not specifically single premium policies. Option D is inaccurate, as a single premium policy does not require annual payments; it is paid in full at the outset.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now