If you wanted to provide more coverage for your family early in life when they need it the most and decrease the amount of benefits in later years,yet continue to pay the same premiums,you should buy a(n)________ policy.

Question

Quizplus · Accepted Answer

The type of policy described in the question is a decreasing-term insurance policy. This type of policy provides a higher level of coverage when the insured's financial obligations are at their highest (such as when they have young children) and decreases over time as those obligations decrease. The premiums for this type of policy remain level, which means that the insured can continue to pay the same premium amount over the life of the policy without any increase. Whole life, universal life, and variable life policies do not offer decreasing benefit amounts over time.

If You Wanted to Provide More Coverage for Your Family