Question

Regardless of the type of term insurance purchased, the premium is level throughout the term of the policy; only the amount of the death benefit may fluctuate, depending on the type of term insurance.

a) True
b) False

Answer 1

The premium for term insurance remains level throughout the term of the policy, with only the death benefit amount fluctuating.

Step-by-step explanation:

The statement is True. Regardless of the type of term insurance purchased, the premium remains level throughout the term of the policy. However, the amount of the death benefit may fluctuate depending on the type of term insurance. Term insurance policies are designed to provide coverage for a specific period of time, typically ranging from 5 to 30 years. During this term, the premium paid by the policyholder remains constant, providing predictable costs for the duration of the policy.