Vidyalelo
Commerce · Q411

Insurance

Graduate and Post Graduate · Commerce · question 411

Q411

In decreasing-term insurance, the premiums paid _________ over time.

A.
Increase
B.
Decrease
C.
Remain constant
Answer
D.
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.