Question 4012 of 303 · California Life-Only Agent Exam

The statement that life insurance creates an immediate estate means that

Exactly one answer is correct.

Athe death benefit is payable at death, even if few premiums have been paid
Bthe insured owns real property as soon as the application is signed
Cthe policy owner can withdraw all premiums paid at any time
Dthe policy cannot be reached by estate taxes in any case

Show solution

Correct answer to question 4012

A: the death benefit is payable at death, even if few premiums have been paid

Explanation

Life insurance provides the face amount at death whenever it occurs, as long as the policy is in force.