Q156
Which of the following statements is incorrect with regards to decreasing term assurance?
A.
Death benefit amount decreases with term of coverage
B.
Premium amount decreases with term of coverage
AnswerC.
Premium remains leveled throughout the term
D.
Mortgage redemption plans are an example of decreasing term assurance plans
Answer: Option B
Solution
Answer: Option B
Solution:
Premium amount increases with the term of coverage. Hence, option (2) is incorrect.