Which of the following statements is incorrect with regards to decreasing term assurance?

A. Death benefit amount decreases with term of coverage

B. Premium amount decreases with term of coverage

C. Premium remains leveled throughout the term

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

Answer: Option B

Solution(By Examveda Team)

Premium amount increases with the term of coverage. Hence, option (2) is incorrect.