Exam DISC-IA Practice Question 202
Study guide: Exam DISC-IA
A universal life policyholder loses her job and pays no premiums for three years. Her account value at the start of that period is $18,000, and the monthly expense and cost of insurance charges total about $400. What happens to the policy?
- A) It lapses at the first missed premium, as a whole life policy would without a nonforfeiture option
- B) It stays in force indefinitely, because universal life premiums are flexible
- C) It converts automatically to a reduced paid-up policy for the account value
- D) It stays in force only while the account value can pay the charges
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