Question of the Week
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
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.