Francesca Brown has a life insurance policy that provides her with protection for the next five years.However,she can get five more years of protection at the end of this term without having to have a medical examination because she will be less than 70 years old at that time.Her premiums will rise during each five-year period.What type of term life insurance does Francesca likely have?

Question

Quizplus · Accepted Answer

Francesca likely has a renewable term life insurance policy, which allows her to renew her coverage at the end of the initial term without having to re-qualify medically. The premiums will increase with each renewal period. This is different from a straight term policy where the premiums remain the same throughout the entire term, or a convertible policy where the policyholder can convert the term policy into a permanent life insurance policy. A decreasing term policy would have decreasing coverage amounts over time, while an accelerated term policy provides a portion of the death benefit while the policyholder is still alive if they are diagnosed with a terminal illness.

Francesca Brown Has a Life Insurance Policy That Provides Her