67. A decreasing term policy is issued with a decreasing death benefit and
Answer: C
A decreasing term policy is issued with a decreasing death benefit and level premiums.
A decreasing term policy is characterized by a death benefit that declines over the term of the policy while maintaining level premiums throughout its duration.
A) flexible premiums.
Flexible premiums are not a feature of decreasing term policies. Such policies typically have fixed premium amounts that do not change, which allows for easier budgeting and financial planning for the policyholder.
B) decreasing premiums.
Decreasing premiums would contradict the structure of a decreasing term policy. In this type of policy, while the death benefit decreases, the premiums generally remain level, ensuring that the policyholder pays the same amount throughout the term.
C) level premiums.
Level premiums are indeed a key aspect of a decreasing term policy. Despite the death benefit decreasing over time, the premiums remain constant, providing stability for the insured during the life of the policy.
D) increasing premiums.
Increasing premiums are not relevant to decreasing term policies. This type of policy maintains consistent premium payments, which helps avoid the financial burden that could come with rising costs.
Conclusion
The correct answer is C) level premiums, as this feature aligns with the nature of decreasing term policies, which provide a declining death benefit while maintaining consistent premium payments. All other options incorrectly suggest variations in premium structure that do not apply to this type of insurance.