Identify the false statements. I. The ability to use the cash value of a life in
ID: 1170255 • Letter: I
Question
Identify the false statements. I. The ability to use the cash value of a life insurance policy to purchase paid-up term insurance is referred to as a non-forfeiture option. II. The premium for $100,000 of 20-year term insurance will be lower than for 5-year term insurance. III. At a certain age, term insurance can no longer be renewed. IV. Term insurance policies can either be participating or non-participating. V. The premium of term-to-100 insurance rises over time. VI. The premiums of creditor term insurance are fixed. a) I, II and III b) II, IV and V c) I, III and IV d) II, IV and V
Explanation / Answer
I. The ability to use the cash value of a life insurance policy to purchase paid-up term insurance is referred to as a non-forfeiture option.(False)
II. The premium for $100,000 of 20-year term insurance will be lower than for 5-year term insurance. (False)
III. At a certain age, term insurance can no longer be renewed. (False)
IV. Term insurance policies can either be participating or non-participating.(True)
V. The premium of term-to-100 insurance rises over time. (True)
VI. The premiums of creditor term insurance are fixed(True)
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