The correct answer is: D. Increase in the sum assured
An insurance company may permit an increase in the sum assured on a life insurance policy, subject to certain conditions. The most common condition is that the insured must be in good health and must not have any new medical conditions. The insurance company may also require the insured to provide evidence of insurability, such as a medical exam or a blood test.
There are several reasons why an insured might want to increase the sum assured on their life insurance policy. One reason is that their financial needs have changed. For example, they may have taken on more debt, such as a mortgage or a car loan. Or, they may have had a child or other dependents. Another reason is that they may have become more aware of their own mortality. For example, they may have been diagnosed with a chronic illness or they may have seen a close friend or family member die.
Increasing the sum assured on a life insurance policy can be a good way to protect your loved ones financially in the event of your death. However, it is important to understand the implications of doing so. For example, increasing the sum assured will also increase the premium you pay. And, if you cancel your policy before the end of the term, you may have to surrender some of the cash value.
If you are considering increasing the sum assured on your life insurance policy, it is important to speak to an insurance professional to discuss your options and to get a quote for the new premium.
Here is a brief explanation of each option:
- A. Splitting up of the policy into two or more policies: This is not usually permitted by insurance companies, as it would mean that the insured would no longer have the same level of coverage.
- B. Extension of the premium paying term: This is usually permitted, but the insured may have to pay a higher premium.
- C. Change of the policy from with profit policy to 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube