Ask Question
11 February, 12:50

Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums and level-premiums for the next ten years. The level premiums were always higher than the yearly renewable term premiums. Based on this chart, Dennis is convinced he should purchase yearly renewable term insurance. What is Dennis overlooking?

+4
Answers (1)
  1. 11 February, 16:11
    0
    Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums and level-premiums for the next ten years. The level premiums were always higher than the yearly renewable term premiums. Based on this chart, Dennis is convinced he should purchase yearly renewable term insurance. What is Dennis overlooking?

    "Age" and "Amount of coverage" is the important factor that is being overlooked.

    Explanation:

    "Age" and "Amount of coverage" is the important factor that is being overlooked.

    In level premium insurance, premium prices remain unchanged throughout the term whereas, in yearly renewable term premiums, premium rates rise as the policies age.

    Additionally, in level premium, the amount of coverage offered increases over time at no additional expense.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Dennis, age 25, needs lifetime life insurance protection. His agent showed him a chart displaying yearly renewable term premiums and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers