Retirement and Other Insurance Concepts
What conversion right do covered children have when reaching the age limit under a family rider?
Answer and explanation
Answer: D. Children reaching the age limit may convert their term rider coverage to individual permanent policies (often up to 5x face amount) without medical proof.Source: NAIC Life Insurance Guide — PDF page 6, Conversion Right
More retirement and other insurance concepts questions
- How are premium payments and death benefits typically split between an employer and employee in an economic benefit split-dollar arrangement?
- How are premium payments made by an employer for employee group life insurance treated on the employer's corporate tax return?
- How does a business use the death benefit it receives from a key person policy?
- How does an entity-purchase buy-sell plan differ from a cross-purchase buy-sell plan in a multi-owner corporation?
- How is a life settlement generally taxed to a seller who is not terminally ill?
- How is annual interest or cash value growth within a permanent life insurance policy taxed while it remains inside the contract?
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