Types of Policies
How do premiums behave over time in a typical decreasing term life policy?
Answer and explanation
Answer: D. In decreasing term insurance, the premium remains level while the face amount declines.Source: NAIC Term Life Guide — PDF page 3, Decreasing Term Premiums
More types of policies questions
- Under IRC § 7702 corridor rules, what must an insurer do if cash value growth in a universal life policy threatens to breach the statutory life insurance definition ratio?
- What benchmark rate is used in variable annuity payout calculations to determine whether monthly annuity payment amounts increase or decrease?
- What benefit does a joint and survivor annuity payout option provide to two annuitants (such as a married couple)?
- What characterizes a deferred annuity contract during its accumulation phase?
- What defines the death benefit and premium structure of a standard level term life policy?
- What external measure is commonly used to determine interest credits in indexed universal life?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.