A 5-year term life policy will cost ____ a 1-year renewable term policy during the fifth year of the 5-year period,other factors being equal.

Question

Quizplus · Accepted Answer

A 5-year term life policy will have a level premium for the entire term, while a 1-year renewable term policy will have increasing premiums each year. Therefore, the 5-year term policy will cost less than a 1-year renewable term policy during the fifth year.

A 5-Year Term Life Policy Will Cost ____ a 1-Year