Life Insurance Policies
An owner converts a term policy and may choose attained age or original age. What is the trade?
Answer and explanation
Answer: B. Converting at the original age prices the permanent policy as though it had been issued when the term began, so the owner must make up the premium difference with interest. Attained age costs nothing extra now but prices the new policy at the current age, and neither method requires new evidence.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, attained and original age conversion
More life insurance policies questions
- Why do the rules on eligible sponsors insist that the group exist for a purpose other than insurance?
- Why does a limited payment whole life policy need testing against the modified endowment contract rules?
- Why does level term cost less than whole life for the same face amount at the same age?
- Why does New York limit the amount of insurance that may be written on the life of a minor?
- Why does survivorship life cost less than an individual policy of the same face amount on either insured?
- Why is group life insurance generally cheaper per unit than individual insurance?
621 New York questions like this one.
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