New Enroll for RBI, SEBI & NABARD Intro Class! April 18 at 9:15 PM

    Question

    A Life insurance policy for which the cost is equally

    distributed over the term of the premium period, remaining constant throughout is called?
    A Hold-Harmless Agreement Correct Answer Incorrect Answer
    B Incontestability Provision Correct Answer Incorrect Answer
    C Level Premium Insurance Correct Answer Incorrect Answer
    D Limited Payment Life Insurance Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Level-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases. As a result, the coverage can be advantageous over time as a policyholder keeps paying the same amount but has access to increased benefit coverage as the policy matures.

    Practice Next