Question

Brad buys a permanent life insurance policy that has a fixed premium for five years. In year six, the premium increases to a higher amount and stays level for life. What type of life insurance policy did Brad purchase?

A. Group life
B. Straight life
C. Modified life
D. Indexed life

Answer 1

Brad purchased a modified life insurance policy.

Step-by-step explanation:

Based on the given information, Brad purchased a modified life insurance policy. This is because his policy has a fixed premium for the first five years, after which the premium increases to a higher amount and remains level for life. Modified life insurance policies offer a lower premium in the initial years and then increase in later years.