Life Insurance Policies
What does level premium term mean?
Answer and explanation
Answer: C. A level premium term policy averages the rising cost of mortality across the term so the owner pays the same amount each year. Annual repricing belongs to annually renewable term, and a falling premium to some decreasing term designs.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, level premium term
More life insurance policies questions
- What external measure is commonly used to determine interest credits in indexed universal life?
- What form of insurance is group life cover usually written as?
- What forms of individual policy may a converting member obtain under section 3220?
- What happens to a survivorship life policy when the first of the two insured lives ends?
- What happens to the cost of an increasing term benefit as the insured ages and the coverage amount rises?
- What happens under a whole life policy if the insured lives to the contract's maturity age?
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