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1.
If your group term life insurance policy allows you a conversion benefit, that means you can _______.
Choose wisely. There is only one correct answer.
Turn the policy into an individual one when you terminate employment. Turn the policy into an individual one when you terminate employment. Conversion refers to switching between a group and an individual plan.
2.
Term life insurance premium rates are usually cheaper than whole life insurance premium rates.
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True. This is largely because term life insurance does not build up a cash value.
3.
Individual term life insurance may be less expensive than group term insurance if _______.
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Both B and C. The young and the healthy normally pay lower premiums.
4.
If you cancel a term life insurance policy, the policy pays you an amount equal to the policys cash value.
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False. Whole life insurance provides this benefit, but term life does not.
5.
In setting a premium for an entire group of employees, insurance underwriters consider _______.
Choose wisely. There is only one correct answer.
The size of the group. Their health status isnt as important because risk is spread among numerous people.