What additional information about Dr. Kumar’s policy does Kavya need to complete her review?

Dr. Kumar owns a 10-year term life insurance policy with a level death benefit of $500,000 issued by Expert Health & Life Inc. The policy is renewable, convertible to age 70, and contains no additional riders. Dr. Kumar is the life insured. She is single, has no dependents, and her estate is named as the policy’s beneficiary. The current premiums are $365 per year, based on standard health, non-smoker rates. As the policy is due to renew in a few months, Dr. Kumar meets with Kavya, an insurance agent referred to her by a mutual friend. Kavya reviews all of the information presented above, but notices a missing detail.

What additional information about Dr. Kumar’s policy does Kavya need to complete her review?
A . The policy conversion age.
B . The policy death benefit amount at renewal.
C . The policy cash surrender value (CSV).
D . The policy premiums upon renewal.

View Answer

Answer: D

Explanation:

The renewal of a term life insurance policy typically results in a higher premium due to the increased age of the insured. Since the policy is approaching renewal, Dr. Kumar needs to know what the new premium amount will be. Renewal premiums are usually based on the insured’s age at renewal and are essential for decision-making regarding the affordability and continuation of the policy.

Therefore, Option D is the correct response as it highlights a critical piece of information Kavya requires to complete her review.