Vidyalelo
Commerce · Q558

Insurance

Graduate and Post Graduate · Commerce · question 558

Q558

Which is correct?

A.
A convertible Term policy cannot be converted into a whole life policy
B.
A convertible policy can be converted into a money back cover also
C.
A Convertible Term policy can be converted into a whole life policy
Answer
D.
A converting term policy can be converted into a decreasing term policy

Answer: Option C

Solution

Answer: Option C
Solution:
A convertible policy can be converted into another type of insurance policy at the same insurance company. Typically, convertible insurance deals with a level-term insurance policy that can be converted into a permanent/cash value policy that may be some form of whole life or universal life.