Oklahoma Life Producer Practice Exam

A _______________ policy goes from term to term.

1. convertible

2. level

3. renewable

4. whole

The correct answer is: renewable

A renewable policy is designed to extend coverage from one term to the next without requiring the insured to provide evidence of insurability at the time of renewal. This means that as the policy holder, you can continue to renew your insurance coverage for additional terms, typically at the end of each term. This concept provides flexibility and peace of mind to policyholders who may face changes in their health status over time, as they don't have to requalify for coverage when their term ends. A convertible policy allows the policyholder to convert a term insurance policy into a permanent policy without undergoing medical underwriting, but it doesn't specifically refer to transitioning from term to term. A level policy refers to fixed premiums and coverage amounts that remain constant over the life of the policy, rather than moving between terms. Whole life insurance is a type of permanent policy with guaranteed death benefits and cash value accumulation, distinct from term insurance policies that are typically for a specified duration.