Vidyalelo
Commerce · Q517

Insurance

Graduate and Post Graduate · Commerce · question 517

Q517

Which is correct about a decreasing Term Insurance?

A.
Premium will increase over time
B.
Premium will decrease over time
C.
In decreasing term insurance the premium is constant through the term
Answer
D.
Premium is returned periodically

Answer: Option C

Solution

Answer: Option C
Solution:
In decreasing term insurance the premium is constant through the term. A term life insurance policy in which the policyholder pays a constant premium but the benefit decreases over time, either on a monthly, quarterly, or yearly basis.