SOA Exam FAM Sample Question 1.4
Study guide: Exam FAM
A self-employed small business owner purchased an insurance contract that will pay a benefit equal to 70% of salary in the event that the owner becomes sick and cannot work. The contract will cease at retirement age.
Determine which of the following contracts provides these benefits.
[Question on October 2022 FAM-L Exam]
- A) Term life insurance
- B) Disability income insurance
- C) Long-term care insurance
- D) Single premium immediate annuity
- E) Critical illness insurance
Answer this question and see the worked solution
Concepts tested
- Disability Income Insurance
- Critical Illness Insurance
- Long-Term Care Insurance
- Long-Term Insurance Coverage