The correct answer is: A. Whenever the claim arises before the end of the policy term it is an early claim.
An early claim is a claim that is made before the end of the policy term. This means that if you take out a 10-year policy and make a claim after 5 years, this would be considered an early claim.
There are a few reasons why an early claim might be made. For example, you might have a sudden illness or accident that means you can no longer work. Or, you might have lost your job and no longer have the income to cover your expenses.
If you make an early claim, you may have to pay a higher excess than if you had waited until the end of the policy term. You may also have to pay a higher premium for the rest of the policy term.
It’s important to understand the terms and conditions of your policy before you make a claim. This will help you to avoid any surprises and make sure that you get the best possible outcome.
Here is a brief explanation of each option:
- Option A: Whenever the claim arises before the end of the policy term it is an early claim. This is the correct answer.
- Option B: If the claim arises after 5 years, it is an early claim. This is not correct. An early claim is a claim that is made before the end of the policy term, regardless of how long the policy has been in place.
- Option C: All death claims are early claims. This is not correct. A death claim is a claim that is made after the policyholder has died. It is not necessarily an early claim.
- Option D: A claim by death within three years of commencement. This is not correct. A claim by death within three years of commencement is a specific type of early claim. It is not the only type of early claim.