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LLQP (Life Licence Qualification Program) Practice Exam · Question

Why would someone choose a renewable term life insurance policy?

The renewability feature guarantees the policyowner the right to renew the policy for another term at a higher, predetermined premium rate, without needing to p

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Question: Why would someone choose a renewable term life insurance policy?

Answer options:

  • To guarantee a level premium for their entire life. ✅ To ensure they can continue their coverage at the end of the term without proving insurability.
  • To have access to a cash value savings component.
  • Because it has the lowest premium in the long run.

Correct answer: To ensure they can continue their coverage at the end of the term without proving insurability.

Explanation: The renewability feature guarantees the policyowner the right to renew the policy for another term at a higher, predetermined premium rate, without needing to provide evidence of good health.

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