Decreasing term insurance usually has a decreasing face value and:
A) a decreasing premium.
B) a constant level premium.
C) an increasing premium.
D) a fluctuating premium.
E) none of the above

Question

Quizplus · Accepted Answer

Decreasing term insurance is designed to provide coverage that decreases over time, typically in line with a borrower's outstanding debt. However, the premium paid by the policyholder usually remains level for the duration of the policy. This means that the insured pays the same amount for coverage each year, despite the decreasing face value. Therefore, option B is the correct answer.

Decreasing Term Insurance Usually Has a Decreasing Face Value And