The Feature of Guaranteed Renewal for a Term Life Policy

question 6

Multiple Choice

The feature of guaranteed renewal for a term life policy protects the:

• A) insured.
• B) insurer.
• C) both a and b .
• D) the Insurance Council.

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Definitions:

Conditional Probability

The probability of one event occurring with some relationship to one or more other events.

Real Option

A choice available to companies involving business decisions on investments, which use the concept of option valuation in financial markets.

Scenario Analysis

A process of analyzing future events by considering alternative possible outcomes (scenarios), often used in the assessment of risk or strategic planning.

NPV

Net Present Value, a calculation used to estimate the profitability of an investment or project by summing the present values of all expected future cash flows.