If a Term Life Policy Is Convertible, the Insured Has

question 33

Multiple Choice

If a term life policy is convertible, the insured has the option to convert it to:

• A) cash
• B) an annuity
• C) a decreasing term policy
• D) a permanent form of coverage

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Definitions:

Consumption

The use of goods and services by households, contributing to their living standards and economic activity.

Midpoint Formula

A method used in economics and statistics to calculate the elasticity of a variable, or the percentage change in one variable in response to a percentage change in another.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price, indicating sensitivity to price changes.

Quantity Demanded

The entire quantity of a product or service that buyers are prepared and have the capacity to buy at a given price point.