If one converts his or her convertible term life insurance policy and wants the cash-value to build up in the policy beginning with the date of the conversion which of the following is (are) true?

Question

Quizplus · Accepted Answer

When converting a term life insurance policy to a permanent policy and choosing to have the cash-value build up from the date of conversion, the premium will be based on the insured's age at the time of conversion, not when the original policy was written. Evidence of insurability may be required if the permanent policy has a higher death benefit than the original term policy, but this was not specified in the question. Therefore, the correct answer is A.

If One Converts His or Her Convertible Term Life Insurance