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:

Confidence Interval

A set of values, taken from sampled data, that potentially covers the value of an unknown parameter of the population.

Mean Score

The average value calculated by adding all individual scores and dividing by the number of scores.

Confidence Interval

A collection of values, extracted from sample measurements, likely to harbour the value of an undetected population parameter.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true population parameter with a specified level of confidence.