Which form of term insurance keeps both the premium and the death benefit constant for the entire term?
Explanation
Level term holds both the face amount and the premium steady for the full term, which is why it is the most common form for temporary needs. Decreasing term keeps a level premium but a shrinking benefit. Increasing term has a benefit that grows. Annual renewable term keeps a level benefit but a premium that rises each year. Only level term locks in both values for the whole term.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- A 'jumping juvenile' policy is a form of juvenile life insurance in which the face amount:
- Credit life insurance is generally structured as:
- Return-of-premium (ROP) term insurance is distinguished from ordinary term because it:
- Decreasing term insurance is most commonly purchased to:
- Increasing term insurance provides:
- Under Option B (the increasing death benefit option) of a universal life policy, the total death benefit is equal to:
Last reviewed: · editorial process