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Commerce · Q412

Insurance

Graduate and Post Graduate · Commerce · question 412

Q412

Using the conversion option present in a term policy you can convert the same to _________.

A.
Whole life policy
Answer
B.
Mortgage policy
C.
Bank FD
D.
Decreasing term policy

Answer: Option A

Solution

Answer: Option A
Solution:
Using the conversion option present in a term policy you can convert the same to Whole life policy. Most term life insurance policies sold today come with a conversion feature that allows you to convert some or all of your term life insurance policy to a permanent policy like whole life, universal life or variable life.