Insurance Licensing Maryland Life Producer Exam - Topic 1 Question 7 Discussion

Definition of juvenile life insurance.

Juvenile life insurance provides coverage on the life of a minor, typically owned by a parent or guardian.

Evaluate each option.

A . Insures parents

Incorrect. Juvenile policies insure the child.

B . Limited to under age five

Incorrect. Coverage is available for a broader age range.

C . Insures the life of a minor

Correct. This is the precise definition.

D . Only decreasing term

Incorrect. Juvenile policies may be term or permanent.

Maryland consumer protection relevance.

Juvenile policies are regulated to ensure insurable interest and appropriate ownership by adults.

Conclusion.

A juvenile life insurance policy insures the life of a minor.