Types of Policies
An insured buys convertible term at age 30 and converts it to permanent insurance at age 40. Which age generally determines the new premium?
Answer and explanation
Answer: A. Consumer guidance explains that premiums for the new permanent policy are based on the insured's attained age when conversion occurs.Source: New York Department of Financial Services — Life Insurance Information for Consumers — Types of Term Insurance > Convertible Term; premium based on current attained age
More types of policies questions
- How is the payout phase (annuitization) structured under a straight life income annuity settlement option?
- If current interest rates exceed expectations in an interest-sensitive whole life policy, what options may the insurer offer the owner?
- If the reference equity index suffers a severe negative loss (-20%) during a policy year, what protects the equity-indexed policyowner's cash value?
- In a fixed annuity contract, where are the contract funds invested by the insurance company?
- In variable life insurance, what most directly causes the policy’s cash value to fluctuate?
- Most modern fixed annuity contracts allow what penalty-free withdrawal percentage annually during the surrender charge period?
590 Texas questions like this one.
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