📝 Insurance Exam Prep: Death benefits are the core promise of every life insurance policy:
🔹 Paid to the beneficiary upon the insured’s death
🔹 Usually income tax-free when paid as a lump sum
🔹 Can be paid in different ways — lump sum, fixed amount, or life income option
💡 On the exam: Remember—the beneficiary receives the death benefit, not the policy’s cash value (unless stated in Variable or Universal Life options).
#insuranceexam #lifeinsurance #insuranceexamprep #lifeandhealthexam
source
Life Insurance Death Benefits: What You Must Know for the Exam!
