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Which of the following is NOT a problem when existing life insurance is replaced with new coverage?

1) Increased premium
2) Loss of cash value
3) Loss of death benefit
4) Decreased coverage

User McFarlane
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1 Answer

5 votes

Final answer:

The problem that is NOT associated with replacing existing life insurance with new coverage is a loss of death benefit.

Step-by-step explanation:

The problem that is NOT associated with replacing existing life insurance with new coverage is a loss of death benefit. When replacing life insurance, there might be an increased premium because the new coverage may have different terms and conditions compared to the existing policy. There might also be a loss of cash value if the new coverage does not include a cash value component. Additionally, there is a possibility of decreased coverage if the new policy offers lower death benefit than the existing one.

User Prajjwal
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