Retirement and Other Insurance Concepts
Why is a conversion privilege most valuable to a person whose health has declined?
Answer and explanation
Answer: B. Conversion matters most to someone who could not qualify for new coverage because the individual policy issues without evidence of insurability. The premium follows the attained age at the insurer's individual rate rather than the entry age or the group rate, and the window is limited.Source: Pearson VUE — Georgia Insurance Examination Content Outlines #121102 — Outline page S2, Value of conversion
More retirement and other insurance concepts questions
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Under a third-party owned policy, who may take a policy loan against the accumulated cash value?
- Under an Executive Bonus Plan (IRC Section 162), how are premium payments structured and taxed for the executive?
- Under IRC Section 79, up to what amount of employer-provided group term life insurance coverage is received completely tax-free by an employee?
- Under Social Security survivor benefits rules, what is the 'blackout period' for a surviving spouse?
- Under the human life value approach, what is being measured?
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