New York State Life Insurance Exam Questions Practice Question
Which of the following is a characteristic of level premium term life insurance?
Correct Answer: D
Rationale: Level premium term life insurance features a consistent premium payment throughout the policy's duration, which helps manage costs effectively.
Option A is incorrect as level premium term policies provide a fixed death benefit, not lower benefits. Option B is misleading; term insurance does not accumulate cash value, unlike whole life policies. Option C misrepresents the nature of term insurance; while it maintains a level benefit, it does not specifically match life expectancy. Thus, option D accurately reflects the principle of averaging costs over the policy's term, ensuring predictable payments for the policyholder.
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