PSI Ohio Insurance Practice Exam

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Prepare for the PSI Ohio Insurance Exam. Utilize flashcards and multiple choice questions with hints and detailed explanations. Gear up for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What type of life policy can be renewed each year without a medical examination, but has rates based on current age?

Whole life insurance
Term life insurance
Renewable term life insurance
Universal life insurance

The correct answer is: Renewable term life insurance

Renewable term life insurance is specifically designed to allow policyholders to renew their coverage annually without the necessity of undergoing a medical examination. This feature provides convenience and accessibility, particularly for individuals who may have developed health issues since the initial purchase of their policy. As the insured ages, the rates for renewable term life insurance adjust accordingly based on their current age, reflecting the increased risk associated with aging and potential health changes. This type of policy is particularly useful for those seeking temporary coverage while retaining the flexibility to keep their insurance in force as their needs evolve over time. In contrast, whole life insurance provides lifelong coverage with fixed premiums and does not require renewal, while universal life insurance combines a death benefit with an investment component, offering flexible premium payments and death benefits. Term life insurance generally offers coverage for a specified term without renewal options or the age-based adjustment common in renewable term policies.