Which of the below statement is incorrect with regards to decreasing term assurance?

A. Death benefit amount decreases with the term of coverage

B. Premium amount decreases with the term of coverage

C. Premium remains level throughout the term

D. Mortgage redemption plans are an example of decreasing term assurance plans

Answer: Option B

Solution(By Examveda Team)

Premium amount doesn't decreases with the term of coverage. Premium payments often start at a higher level than policies with similar coverage but are ultimately worth more than competitors as policyholders experience increased coverage over time at no additional expense.