Life Insurance FundamentalsQuestion 397 of 716

Increasing term insurance provides:

a.A death benefit that stays exactly level for the whole term
b.No death benefit unless the insured survives the entire term, which reverses how term insurance actually pays
c.A death benefit that grows over the term, with a premium that usually rises as well
d.A death benefit that declines steadily throughout the term

Explanation

Increasing term features a death benefit that rises over the policy period, often used to offset inflation or as part of a return-of-premium design, and the premium generally increases along with the growing benefit. A level benefit describes level term, and a declining benefit describes decreasing term. Term insurance pays on death during the term, not on survival. The rising benefit is what defines increasing term.

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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)
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