Which of the Following Statements About Term Insurance Is True

question 5

Multiple Choice

Which of the following statements about term insurance is true?

• A)The coverage is appropriate if the goal is permanent lifetime protection.
• B)Most policies can be renewed for additional periods without evidence of insurability.
• C)Premiums increase at a constant rate each time the policy is renewed.
• D)Most policies have a cash value that is refunded when coverage ceases.

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Definitions:

Organization

An entity comprising multiple people structured and managed to meet a need or to pursue collective goals.

Rationale

The underlying reason or logical basis for a decision, action, or belief.

Immediate Response

A prompt or quick reaction to a request, question, or action, often expected in real-time communications.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization, overseeing and guiding the work of others.