Which of the following features CAN apply to a Pension Term Assurance policy?

• A. Lower rates for non-smokers
• B. Optional serious illness cover
• C. Joint life assurance cover
• D. A cash return on early termination

Answer: (A)

A Pension Term Assurance policy can indeed offer lower rates for non-smokers as it is common practice within the life insurance industry to provide favorable premiums to individuals who do not smoke. This is based on the understanding that non-smokers generally have a longer life expectancy than smokers, which reduces the risk for the insurance provider. By implementing these lower rates, insurers are able to attract healthier individuals, ultimately benefiting both the insured and the company.

The other features mentioned may not typically apply to a Pension Term Assurance policy. Optional serious illness cover is usually associated with critical illness policies rather than term assurance. Similarly, joint life assurance cover is more characteristic of life insurance aimed at couples rather than pension plans. Lastly, a cash return on early termination is generally not a feature of term assurance, as these policies are designed to provide a death benefit rather than a cash value upon cancellation. This underscores why the feature of lower rates for non-smokers stands out in the context of a Pension Term Assurance policy.