Life Insurance Policies
What stays level throughout the term of a level term life insurance policy?
Answer and explanation
Answer: A. Level term keeps the death benefit constant for the whole term, so a claim in the first year and a claim in the last are paid the same sum. The underlying mortality cost still rises with age, and term insurance builds no cash value.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, level term
More life insurance policies questions
- For what periods is level premium term commonly issued?
- How do a cap and a participation rate each limit the interest credited on an indexed policy?
- How do contributory and noncontributory group plans differ in participation requirements?
- How does a benefit schedule support group underwriting?
- How does annually renewable term differ from a ten year level term policy?
- How does fixed indexed life differ from variable life in where the risk falls?
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