Q411
In decreasing-term insurance, the premiums paid _________ over time.
A.
Increase
B.
Decrease
C.
Remain constant
AnswerD.
Are returned
Answer: Option C
Solution
Answer: Option C
Solution:
In decreasing-term insurance, the premiums paid remain constant over time. Decreasing term insurance is renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually.