If You Have a Conversion Term Policy

question 21

Multiple Choice

If you have a conversion term policy,

• A) Your premium will not increase when you renew it.
• B) You can convert your policy from permanent to term at any time.
• C) You can convert your term policy to a permanent policy.
• D) Your policy will have the same premium as other term policies.
• E) Your benefit to your beneficiary will be less as time passes.

---

Definitions:

Average Variable Cost

Variable cost divided by the quantity of output

Unique Goods

Products that are distinct in their characteristics, offering uniqueness that differentiates them from mass-produced items.

Price Discrimination

A strategy in pricing where the same provider sells identical or nearly identical products or services at varying prices across different markets.

Deadweight Loss

The reduction in total societal welfare resulting from market inefficiencies, typically due to taxes, subsidies, or monopolies.