Question of the Week

If an individual becomes a policyholder of a variable life insurance policy and is uncertain whether this is the appropriate instrument for him and his family; within what period of time must the insurance company allow him to exchange the variable policy for a traditional whole life policy without additional evidence of insurability?

a) 9 months
b) 2 years
c) 90 days
d) 18 months

Answer:

The correct answer is b.

Insurance companies issuing variable life policies must allow the holders of those policies to exchange (or convert) the policy for a whole life policy issued by the company, with the same or lower death benefit for 2 years.