Death benefit amount decreases with the term of coverage
Premium amount decreases with the term of coverage
Premium remains level throughout the term
Mortgage redemption plans are an example of decreasing term assurance plans
✅ The correct answer is B.
Premium amount doesn’t decreases with the term of coverage. Premium payments often start at a higher level than policies with similar coverage but are ultimately worth more than competitors as policyholders experience increased coverage over time at no additional expense.
Premium amount doesn’t decreases with the term of coverage. Premium payments often start at a higher level than policies with similar coverage but are ultimately worth more than competitors as policyholders experience increased coverage over time at no additional expense.