Which of the Following Statements About the Guaranteed Purchase Option

question 39

Multiple Choice

Which of the following statements about the guaranteed purchase option is true?

• A)An insured usually has 24 months to exercise an option.
• B)The option cannot be exercised until the insured reaches age 40.
• C)The amount of life insurance that can be purchased at each option is limited to 10 percent of the face amount of the basic policy.
• D)The additional coverage can be purchased without demonstrating insurability.