Which of the following best describes annually renewable term insurance? (2023)

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Which of the following best describes annually renewable term insurance?

Annual renewable term insurance (ART) is a form of term life insurance which offers a guarantee of future insurability for a set number of years. During the stated period, the policyholder will be able to renew each year without reapplying or taking another medical exam to reaffirm eligibility.

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Which best describes a renewable term life insurance policy?

A renewable term is a clause in a term insurance policy that allows the beneficiary to extend the coverage term for a set period of time without having to re-qualify for new coverage. A renewable term is contingent on premium payments being up to date, as well as a renewal premium being paid by the beneficiary.

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What is yearly renewable term life insurance?

A yearly renewable term is a one-year term life insurance policy. This type of policy gives policyholders a quote for the year the coverage is bought. When someone buys a yearly renewable term insurance policy, the premium quoted is for a one-year term, starting in the current year.

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What is renewable about renewable term insurance quizlet?

Renewable term policies are called "renewable" because the insured is able to renew the policy if he wishes to do so, without evidence of insurability. An annual renewable term policy may be renewed each year, up to a specified age.

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Which of the following is an advantage of annual renewable term life insurance?

What are the benefits of a convertible and renewable term life insurance policy? Renewable and convertible term life policies allow the insured to renew or convert coverage without needing to provide proof of insurability. The correct answer is: Proof of insurability is not required to convert or renew coverage.

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What is a renewable term life insurance policy can be renewed?

A renewable term clause means that you can renew the policy at the end of the term, often in one year increments. While your premium will go up based on your new age, you won't have to undergo a new health evaluation.

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Which type of term insurance may be renewable?

Level term is the most popular type of renewable term insurance because it pays a guaranteed, unchanging death benefit. The death benefit gradually gets lower if you purchase a decreasing term policy. There are also various level term policy lengths that may include a renewable clause.

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What happens to premiums for yearly renewable term insurance as an insured gets older?

It is most appropriate when an insured needs lifetime protection. 23) What happens to the premiums for yearly renewable term insurance as an insured gets older? A) They increase at an increasing rate.

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What is the renewal term policy?

The renewable term life insurance renewable feature means that the concerned policy can be renewed at the end of the term for another term, usually of the same duration, without further proof of insurability generally but companies try to increase the costs or premium based up on the insurers health sometimes .

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What advantage does the renewable feature give to a term policy quizlet?

The renewability feature allows the coverage to be renewed for another period or another term without the insured having to provide proof of insurability, meaning that even those who have become uninsurable are guaranteed the right to renew the policy.

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Which of the following statements regarding annual renewable term art life insurance is are correct?

All of the following statements are true regarding annual renewable term (ART) policies, EXCEPT: ART policies are guaranteed renewable (until a certain age) without proof of insurability. The correct answer is: ART is guaranteed renewable on an annual basis with proof of insurability.

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Which of these would be the best example of a limited pay life insurance policy quizlet?

Which of these would be the best example of a limited pay life insurance policy? A permanent life insurance policy where the policy owner pays premiums for a specified number of years is called a limited pay policy.

Which of the following best describes annually renewable term insurance? (2023)
What policy can be described as annual renewable term with a cash value account?

In this way, universal life policies are simply annual renewable term with a cash value account.

When can the renewal option be exercised under a renewable term assurance?

In short, you take out your term assurance for a set term, for example 10 years, but include the renewable option. At the 10-year anniversary you will be given the option to renew the plan free of underwriting (ie, no further medical questions) for a further 10 years.

What is term renewable?

A renewable term insurance is a defined benefit provision that requires the recipient to continue the service term for a fixed amount of time without re-qualifying for new coverage. A renewable term is dependent on timely premium costs and the beneficiary's payment of a renewal premium.

What are 4 types of term life insurance?

Common types of level term
  • Yearly- (or annually-) renewable term.
  • 5-year renewable term.
  • 10-year term.
  • 15-year term.
  • 20-year term.
  • 25-year term.
  • 30-year term.
  • Term to a specified age (usually 65)

What are the four types of term insurance?

Types of term insurance
  • Level Term Plans.
  • Increasing Term Insurance.
  • Decreasing term insurance.
  • Return of Premium Term Insurance.
  • Convertible Term Plans.

What happens to term life insurance when it expires?

Generally, when term life insurance expires, the policy simply expires, and no action needs to be taken by the policyholder. A notice is sent by the insurance carrier that the policy is no longer in effect, the policyholder stops paying the premiums, and there is no longer any potential death benefit.

Does term insurance premium increase every year?

Premiums. Even though the coverage of the increasing term insurance plan increases every year, the premium rate of the policy usually remains the same throughout the policy term. While computing the premium at the initiation of the policy, the insurance company accounts for the increase in the sum assured amount.

Can term life insurance be renewed?

Terms for renewability are part of many term life insurance policies. Often you can renew by extending your current policy year-by-year after the initial expiration date in exchange for taking on a higher premium.

What is a 20 year renewable and convertible term?

A convertible term policy starts out like a regular term life insurance policy. It's temporary life insurance coverage with a set expiration date, such as 10, 15, 20 or 30 years. If you die within the coverage period, the policy will pay out the death benefit to your beneficiaries.

Which of the following best describes term life insurance?

Correct option is (B) The insured pays a premium for a specified number of years. The following best describes term life insurance: The insured pays a premium for a specified number of years.

Which of the following best describes MIB?

ANSWER: C EXPLANATION: The Medical Information Bureau (MIB) is a nonprofit trade organization which receives adverse medical information from insurance companies and maintains confidential medical impairment information on individuals.

Which of the following is the best reason to purchase life insurance rather than annuities?

The best reason to purchase life insurance rather than annuities is your beneficiaries can inherit a death benefit tax-free.

Which type of life insurance policy generates immediate cash value?

A cash value component can only be found in permanent life insurance products such as whole, variable and universal life insurance.

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