The form of term assurance that operates three options which must be excised before maturity is

Answer Details

The form of term assurance that operates three options which must be excised before maturity is convertible term insurance. Convertible term insurance is a type of life insurance that allows the policyholder to convert their policy into a permanent life insurance policy, such as whole life insurance or universal life insurance, before the policy's maturity date. The three options that must be exercised before the maturity date are the policy conversion option, the policy continuation option, and the policy expiration option. The policy conversion option allows the policyholder to convert their term life insurance policy into a permanent life insurance policy. The policy continuation option allows the policyholder to continue the term life insurance policy beyond the original term. The policy expiration option allows the policyholder to simply allow the policy to expire at the end of the term without receiving any benefits. Convertible term insurance can be a good option for individuals who want the flexibility to switch to a permanent life insurance policy in the future, but who may not be able to afford the higher premiums associated with permanent life insurance at the time they purchase their policy.