Which is correct about a decreasing Term Insurance?

A. Premium will increase over time

B. Premium will decrease over time

C. In decreasing term insurance the premium is constant through the term

D. Premium is returned periodically

Answer: Option C

Solution(By Examveda Team)

In decreasing term insurance the premium is constant through the term. A term life insurance policy in which the policyholder pays a constant premium but the benefit decreases over time, either on a monthly, quarterly, or yearly basis.