Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under a level term life insurance policy with a 20-year guarantee period, during those 20 years the:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Level term insurance guarantees both a level death benefit and a level premium for the stated period, such as 10, 20, or 30 years. The word level applies to both the coverage amount and the premium during the guarantee period. This contrasts with annually renewable term, whose premium rises each renewal, and decreasing term, whose death benefit declines - the three term patterns summarized in objective LIFE-II.B.5.
Why the other options are wrong
- B) Rising premiums with level coverage describe annually renewable term insurance, not level term.
- C) A declining death benefit with level premiums describes decreasing term insurance, used for mortgages and similar needs.
- D) Neither the premium nor the death benefit decreases in a level term policy; both are fixed during the level period.
Memory hook
Level term = flat premium and flat face amount, locked for the whole term.