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American_Bankers_Association

CTFA · Question #7

Apart from comparing cover and costs, what other key factor should usually be considered if a financial adviser intends to recommend that a client cancels an existing term assurance policy and…

The correct answer is B. The underwriting requirements. See the full explanation below for the reasoning.

Investment Management

Question

Apart from comparing cover and costs, what other key factor should usually be considered if a financial adviser intends to recommend that a client cancels an existing term assurance policy and replaces it with a new one?

Options

  • AThe insurable interest
  • BThe underwriting requirements
  • CThe secondhand policy market value
  • DThe chargeable gains

How the community answered

(44 responses)
  • A
    2% (1)
  • B
    84% (37)
  • C
    9% (4)
  • D
    5% (2)

Topics

#term assurance#policy replacement#underwriting#switching advice

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