What is the maximum initial guaranteed death benefit that a funeral prearrangement life insurance agent may sell?

The correct answer of $15,000 as the maximum initial guaranteed death benefit for a funeral prearrangement life insurance agent to sell reflects state regulations governing funeral prearrangements in Texas. This specific limit has been established to ensure that consumers have access to adequate funding for their funeral expenses while maintaining the balance of financial viability and consumer protection in the insurance market.

In Texas, this cap helps prevent the over-insurance of funeral expenses, thereby aiming to minimize the risk of financial exploitation or high-pressure sales tactics that could occur if larger sums were allowed. By setting a reasonable limit, it also assists consumers in making informed decisions about their funeral prearrangements, ensuring they secure funds that directly match typical funeral costs.

Understanding this limit is crucial for those pursuing a career as a funeral prearrangement life insurance agent, as it supports ethical sales practices and compliance with state laws. Therefore, recognizing the $15,000 threshold is essential for accurately advising clients and structuring appropriate funeral service plans.