Asked by Tasia Williams on Jul 25, 2024
Verified
In a decreasing term insurance,the premium stays constant from year to year,but the amount of protection (death benefit)decreases over the years.
Decreasing Term Insurance
A type of term life insurance where the death benefit decreases over time, often used to cover specific financial obligations that reduce over time, like a mortgage.
Premium
The amount paid for an insurance policy, representing the cost to keep the policy active.
Death Benefit
A payout to the beneficiary of an insurance policy or pension plan upon the death of the insured individual or member.
- Gain insight into the specific elements and limitations inherent in life insurance, inclusive of double indemnity and guaranteed insurability.
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Learning Objectives
- Gain insight into the specific elements and limitations inherent in life insurance, inclusive of double indemnity and guaranteed insurability.
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