Types of Policies
An insured’s health deteriorates during a renewable term policy. At the end of the term, which feature is most valuable?
Answer and explanation
Answer: D. Renewable term permits continuation at the end of the term without new evidence of insurability, subject to the contract and continued premiums. It does not create cash value, index ownership, or automatic annuity conversion.Source: NAIC — Life Insurance — Term Life Insurance > Renewable term insurance
More types of policies questions
- A buyer wants a deferred annuity funded entirely with one lump-sum purchase payment. Which funding form should be selected?
- A buyer wants lifetime life insurance funded by one lump-sum payment and wants cash value available immediately. Which policy fits?
- A buyer wants permanent coverage whose credited values respond more quickly to current interest-rate changes than traditional whole life. Which product is the closest match?
- A buyer wants permanent life insurance and wants the scheduled premium obligation to end at age 65 while coverage can continue for life. Which policy design fits?
- A buyer wants to fund a deferred annuity through a series of purchase payments rather than one lump sum. Which funding pattern should the buyer select?
- A buyer wants to fund a deferred annuity with one lump-sum purchase payment and make no later premiums. Which funding form fits?
590 Texas questions like this one.
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