an individual has a $200,000 convertible term life insurance policy. if he chooses, he can\na. convert to…

an individual has a $200,000 convertible term life insurance policy. if he chooses, he can\na. convert to another term policy with a lower face amount without proof of insurability.\nb. purchase an individual annuity for any face amount using the 1035 exchange privilege.\nc. convert to a whole life policy for the same face amount without proof of insurability.\nd. purchase another term policy and increase his death benefit without proof of insurability.

an individual has a $200,000 convertible term life insurance policy. if he chooses, he can\na. convert to another term policy with a lower face amount without proof of insurability.\nb. purchase an individual annuity for any face amount using the 1035 exchange privilege.\nc. convert to a whole life policy for the same face amount without proof of insurability.\nd. purchase another term policy and increase his death benefit without proof of insurability.

Answer

Brief Explanations:

A convertible term - life insurance policy allows the policyholder to convert the term policy to a whole - life policy without providing proof of insurability. Option A is incorrect as conversion to another term policy is not the main feature of convertibility. Option B is wrong because a 1035 exchange is for exchanging life insurance policies or annuities under specific tax - free rules and not directly related to the convertibility of a term policy. Option D is incorrect as purchasing another term policy is not a conversion feature.

Answer:

C. Convert to a whole life policy for the same face amount without proof of insurability.