California Insurance License Exam Practice Test Practice Question
Which product creates an immediate estate?
Correct Answer: B
Rationale: Life insurance creates an immediate estate by providing a death benefit to beneficiaries upon the policyholder's passing, ensuring financial security without delay.
Annuities (Option A) typically involve a series of payments over time rather than an immediate payout, delaying any benefit realization.
Savings programs (Option C) accumulate funds gradually and do not guarantee an immediate payout upon death, thus lacking the immediate estate feature.
Long-term care insurance (Option D) focuses on covering healthcare costs rather than providing a death benefit, making it unsuitable for creating an immediate estate.
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