Questions: What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? A. Limited-Pay Whole life B. Endowment policy C. Convertible Term D. Decreasing Term

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? A. Limited-Pay Whole life B. Endowment policy C. Convertible Term D. Decreasing Term
Transcript text: What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? A. Limited-Pay Whole life B. Endowment policy C. Convertible Term D. Decreasing Term
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Solution

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Answer

The answer is C. Convertible Term

Explanation
Option 1: Limited-Pay Whole life

Limited-Pay Whole life insurance is a type of permanent life insurance where premiums are paid for a specified number of years, but coverage lasts for the insured's entire life. It does not start as temporary coverage.

Option 2: Endowment policy

An Endowment policy is a type of life insurance that pays out a lump sum either on the policy's maturity or on the death of the insured. It is not designed to start as temporary coverage and then convert to permanent coverage.

Option 3: Convertible Term

Convertible Term life insurance starts as temporary coverage and includes a provision that allows the policyholder to convert it to a permanent life insurance policy without providing evidence of insurability. This means the insured can switch to a permanent policy without undergoing a medical exam or proving their health status.

Option 4: Decreasing Term

Decreasing Term life insurance is a type of term life insurance where the death benefit decreases over time, usually in line with a mortgage or other debt. It does not have a provision to convert to permanent coverage.

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