Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under a level term insurance policy, during the policy's term the:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Level term insurance provides a constant death benefit and a level premium for the duration of the term — commonly 10, 20, or 30 years. At the end of the term the coverage typically ends unless it is renewed or converted; if renewed, the new premium is based on the insured's attained age and is therefore higher. Level term builds no cash value. Its predictable premium and benefit make it a common choice for covering a defined period such as a mortgage or the child-raising years.
Why the other options are wrong
- B) A decreasing face amount describes decreasing term insurance, which matches a declining obligation such as a mortgage.
- C) Premiums that rise every year describe yearly renewable term, where the premium is repriced at each renewal.
- D) Term insurance builds no cash value; accumulating cash value is a permanent-insurance feature.
Memory hook
Level term = same benefit and same premium for the whole term. Predictability is the selling point.