Question 5026 of 303 · California Life-Only Agent Exam

A graded death benefit policy typically

Exactly one answer is correct.

Apays an increased benefit if death occurs during the first policy year
Bpays only if death is from accidental causes during the first year
Crequires a medical exam but pays the full benefit with no delay
Dpays a reduced benefit for early natural death

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Correct answer to question 5026

D: pays a reduced benefit for early natural death

Explanation

Graded benefit policies, often for impaired risks, pay a return of premium plus interest or a percentage during the early years. Full benefit is paid after the grading period.

5027A modified premium whole life policy
5028Which statement about a flexible premium policy is correct?
5029In a group life insurance plan, the individual covered under the plan receives
5030Third-party contract insurance refers to a policy
5031Term insurance premiums for an annually renewable policy typically
5032A guaranteed universal life policy is designed primarily to

A graded death benefit policy typically

Correct answer to question 5026

Explanation

More questions: Types of Life Policies