Wendy Has Had a Life Insurance Policy for Five Years

question 38

Multiple Choice

Wendy has had a life insurance policy for five years.She was recently divorced.Which of the following provisions should she take action on?

• A) Incontestability clause
• B) Misstatement of age provision
• C) Naming a beneficiary
• D) Policy reinstatement
• E) The grace period

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Definitions:

Compounded Annually

Interest that is calculated and added to the principal once every year.

Compounded Quarterly

A compound interest calculation where the frequency of compounding is every three months, affecting the overall growth of an investment or debt.

Periodic Interest Rate

The rate of interest earned in one compounding period.

Payment Interval

The length of time between successive payments in an annuity.