Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A level term insurance policy is characterized by which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Level term insurance provides a level death benefit for the entire term period, such as 10, 20, or 30 years, and is usually sold with a level premium for that period. Because neither the benefit nor the premium changes during the term, the cost is predictable. Level term is a popular choice for coverage needed for a specific number of years, such as the term of a mortgage or the working years until retirement.
Why the other options are wrong
- B) A decreasing death benefit with a level premium describes decreasing term insurance, not level term.
- C) Level term does not carry annually rising premiums; that pattern describes annual renewable term, where the benefit is level but the premium climbs each year.
- D) Term insurance is pure death protection and generally builds no cash value at a guaranteed rate.
Memory hook
Level term: the death benefit and the bill both stay flat for the full term. Predictable coverage for a set number of years.