Increasing term insurance provides:
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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Related questions on this topic
- Return-of-premium (ROP) term insurance is distinguished from ordinary term because it:
- Which form of term insurance keeps both the premium and the death benefit constant for the entire term?
- Decreasing term insurance is most commonly purchased to:
- Under Option B (the increasing death benefit option) of a universal life policy, the total death benefit is equal to:
- In a variable life insurance policy, the cash value is held in:
- Variable universal life (VUL) insurance combines:
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