Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which statement best describes a level term life insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Level term insurance provides a death benefit that stays constant for the stated term (for example, a $250,000 20-year level term policy pays $250,000 whether death occurs in year 1 or year 19) and is priced with a level premium for the entire term period. It is pure death protection with no cash value. Decreasing term, by contrast, has a benefit that declines over time.
Why the other options are wrong
- B) A death benefit that declines over time describes decreasing term insurance, which typically tracks a mortgage or loan balance.
- C) Term policies do not accumulate cash value; cash-value accumulation is a feature of permanent insurance such as whole life.
- D) The right to buy additional coverage without evidence of insurability is a guaranteed insurability rider, not a feature of level term itself.
Memory hook
Level term = the coverage and the price both stand still. Flat benefit, flat premium, no cash value.