Life Insurance Policies
How does annually renewable term differ from a ten year level term policy?
Answer and explanation
Answer: C. Annually renewable term keeps the face amount level but reprices the premium every year at the attained age, whereas a ten year level term policy fixes the premium for the whole period. Renewal is guaranteed to the insured in both forms.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, annually renewable term
More life insurance policies questions
- What does it mean for a limited payment whole life policy to be paid up?
- What does level premium term mean?
- What does the floor in a fixed indexed life policy do?
- What does the owner of a level term policy receive if the policy reaches the end of its term without a claim?
- What does the survivor purchase option in a joint life policy commonly provide?
- What evidence of health must a member give to exercise the group conversion privilege?
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