Question

John purchased a life insurance policy. After a year, John buys the same policy without having to show proof of insurability. What type of policy did John buy?

a. Renewable term
b. Convertible term
c. Level term
d. Increasing term

Answer 1

John bought a convertible term life insurance policy, which allows him to convert his policy to a permanent life insurance policy without going through the underwriting process again.

Step-by-step explanation:

John bought a convertible term life insurance policy.

A convertible term life insurance policy allows the policyholder to convert their policy to a permanent life insurance policy without having to show proof of insurability. This means that John can convert his term life insurance policy to a permanent life insurance policy at a later date without going through the underwriting process again.

This option provides John with flexibility as his insurance needs may change over time and he can choose to convert his policy if he wants.