Which of the Following Statements About Re-Entry Term Insurance Is

question 40

Multiple Choice

Which of the following statements about re-entry term insurance is true?

• A) It permits the coverage to be renewed an unlimited number of times as long as insurability is demonstrated.
• B) It permits a refund of premiums paid if the term insurance is renewed a specified number of times.
• C) It permits a lower renewal premium if the insured demonstrates insurability.
• D) It permits a lapsed whole life policy to be reinstated as term insurance.

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Definitions:

Government Revenues

The total income received by the government from taxes and non-tax sources.

Transfer Payments

Payments made by the government to individuals, such as social security or unemployment benefits, that do not correspond to a current supply of goods or services.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the market, often influenced by the central bank's policies.

Investment

The act of allocating resources, usually money, in the expectation of generating an income or profit.