Question

What is the characteristic of Decreasing Term Assurance?

a.

The premiums decrease over time

b.

The death benefit decreases over time

c.

The policy term increases over time

d.

The premiums are payable until the insured's death

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).The death benefit decreases over time Explanation:Decreasing Term Assurance is characterized by a decreasing death benefit over time, usually in a specified order according to the year of death.

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Q. What is the characteristic of Decreasing Term Assurance?
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