Difficulty: Medium

Average Score: 60%

Which of the following is NOT true about a family life insurance policy? When the family policy covers children

Rationale

Coverage for children may be converted to permanent insurance but evidence of insurability is required.

In a family life insurance policy, coverage for children typically does not require evidence of insurability when converting to permanent insurance. This is a significant feature of family policies, allowing children to maintain coverage without additional proof of health, making option B not true about such policies.

A (all children living with the family are covered even if adopted or born after the insurer issued the policy.) YOUR ANSWER

This statement is true as family life insurance policies generally extend coverage to all dependent children, including those who are adopted or born after the policy's issuance. This inclusive nature is a fundamental aspect of family policies, ensuring that all children are protected without additional requirements.

C (there is no additional charge for covering new additions to the family.) YOUR ANSWER

This statement is also true. Most family life insurance policies allow for the inclusion of new dependent children without imposing extra premiums, ensuring that families can expand without worrying about increased costs for insurance coverage.

D (the insurance is 'term' and for a fixed amount.) YOUR ANSWER

This statement is indeed true as family life insurance policies typically provide term coverage at a specified sum, which is meant to provide financial support for a limited duration. This structure allows families to access life insurance benefits during critical years without permanent commitments.

Conclusion

In summary, a family life insurance policy typically covers children without requiring evidence of insurability for conversions and does not impose additional charges for new children. Options A, C, and D reflect accurate characteristics of such policies, while option B incorrectly suggests the need for evidence of insurability, making it the only statement that is not true regarding family life insurance coverage for children.

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