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All of the following are true regarding the convertibility option under a term life insurance policy EXCEPT

User Frozen
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1 Answer

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Final answer:

In the context of term life insurance policies, the convertibility option allows the policyholder to convert their term policy into a permanent policy without the need for a medical examination, typically within a certain time period.

Step-by-step explanation:

In the context of term life insurance policies, the convertibility option allows the policyholder to convert their term policy into a permanent policy (such as whole life or universal life) without the need for a medical examination.

However, one exception to this rule is that the convertibility option may have a time limit, meaning that it can only be exercised within a certain period of time, typically during the initial term of the policy.

Therefore, the correct answer is that the convertibility option under a term life insurance policy usually does NOT continue indefinitely, but rather has a time limit.

User Alessandrob
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