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Which of the Following Statements About a Decreasing Term Insurance

Question 37

Multiple Choice

Which of the following statements about a decreasing term insurance policy is true?


A) The face amount of the policy decreases during the policy period,and the premium increases.
B) The face amount of the policy decreases during the policy period,but the premium remains level.
C) The premium decreases during the policy period,but the face amount remains constant.
D) Both the premium and the face amount of the policy decrease gradually over the policy period.

Correct Answer:

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