Question
A Life insurance policy for which the cost is equally
distributed over the term of the premium period, remaining constant throughout is called?Solution
Level-premium insurance is term life insurance for which the premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases. As a result, the coverage can be advantageous over time as a policyholder keeps paying the same amount but has access to increased benefit coverage as the policy matures.
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