Question

MetLife sent a a notice that you may be able to reduce your annual premiums on your life insurance policy if you can prove you are in good health by filling out a health questionnaire that is acceptable and agree to a medical exanmination that shows satisfactory health results. What type of policy do you most likely have?

a. 10 year level term insurance.

b. Reentry term insurance.

c. Decreasing term insurance.

d. Return of premium insurance.

e. Yearly renewable term insurance.

Answer 1

Option b: Reentry term insurance.

This is a type of insurance where the rates are lowered if the insured passes periodic medical tests. This reduces the premium on the insurance policy.

Under level term insurance, the premium payments remain more or less constant throughout the contract.

Under Decreasing term insurancethe amount of  coverage decreases at a certain rate.

Under  Return of premium insurance, the premium amount is returned when the term ends and the insured survives.

Under Yearly renewable term insurance, teh policy has to be renewed every year.