Life Insurance Policies
An employee leaving a job asks whether to convert the group cover or buy an individual policy. What should be considered first?
Answer and explanation
Answer: C. Conversion's value lies in requiring no evidence of insurability, so an insurable employee may do better shopping the market while an impaired one should convert. Employer contributions cease on termination, and the new employer's plan is a separate question.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, advising on conversion
More life insurance policies questions
- How does level term differ from decreasing term in the pattern of benefit and premium?
- How does the cash value of a continuous premium whole life policy behave over time?
- How does the cash value of a twenty payment whole life policy compare with that of continuous premium whole life issued at the same age?
- How does the death benefit of an increasing term rider or policy change over time?
- How does the premium for a joint life (first-to-die) policy compare to buying two separate individual policies of the same face amount?
- How does the premium for a joint life policy compare with two separate policies on the same lives?
621 New York questions like this one.
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