39. Which of the following is NOT true about a family life insurance policy? When the family policy covers children
Answer: B
Coverage for children may be converted to permanent insurance but evidence of insurability is required is NOT true.
In a family life insurance policy, while coverage for children is a feature, it does not require evidence of insurability when converting to permanent insurance. Therefore, this statement is incorrect.
A) all children living with the family are covered even if adopted or born after the insurer issued the policy.
This statement is true as family life insurance policies typically cover all children living with the family, including those who are adopted or born after the policy is issued. This inclusivity is a key feature of family policies.
B) coverage for children may be converted to permanent insurance but evidence of insurability is required.
This statement is not true. Coverage for children under a family life insurance policy does not necessitate evidence of insurability when converting to permanent insurance. This highlights a misunderstanding of how family policies operate.
C) there is no additional charge for covering new additions to the family.
This statement is true. Family life insurance policies generally do not impose additional charges for new children added to the family, making it a financially beneficial option for families.
D) the insurance is 'term' and for a fixed amount.
This statement is true as well. Family life insurance policies are often structured as term insurance, which provides coverage for a specified period and for a fixed amount, aligning with standard practices in life insurance.
Conclusion
The statement that coverage for children may be converted to permanent insurance but requires evidence of insurability is definitively incorrect, as family life insurance policies allow for conversion without such evidence. The other options accurately reflect the characteristics of family life insurance policies, emphasizing the inclusive and cost-effective nature of covering children. Thus, option B stands out as the only false assertion regarding family life insurance.