Jens is a newly-married man who wants $100,000 of life insurance, but he cannot afford the ordinary level whole life premium until he gets out of graduate school. He would like to pay less for the first few years of coverage until he graduates. He can still obtain the desired amount of insurance for the whole of his life by purchasing:

Question

Quizplus · Accepted Answer

Convertible term insurance allows the policyholder to start with a term life insurance policy, which has lower premiums in the initial years, and then convert it to a whole life policy later without having to provide evidence of insurability. This would be suitable for Jens, who is looking for lower initial payments until he can afford more.

Jens Is a Newly-Married Man Who Wants $100,000 of Life