With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of

A. Gross premiums

B. Single premiums

C. Advance premiums

D. Level premiums

Answer: Option D

Solution(By Examveda Team)

With increase in premium with age, healthy people tended to withdraw leaving unhealthy people. This lead to development of Level premiums. 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.