Final answer:
Among Annuities, Single Premium Life Insurance, Decreasing Term Life, and Modified Life, the Decreasing Term Life insurance (option C.) policy is generally characterized by the least expensive premium because the coverage decreases over time, thus reducing the risk to the insurer.
Step-by-step explanation:
The question asks about which type of insurance is characterized by the least expensive premium among Annuities, Single Premium Life Insurance, Decreasing Term Life, and Modified Life. To determine the least expensive premium, it is helpful to have an understanding of what each type of insurance entails.
An annuity typically involves a substantial initial investment and is designed to pay out over time, so it generally does not have "premiums" in the traditional sense and thus would not be the least expensive in terms of premium costs.
Single Premium Life Insurance requires a large upfront payment that covers the lifetime of the policy and tends to have high initial costs but no ongoing premium payments.
Decreasing Term Life insurance is a type of term insurance where the death benefit decreases at a predetermined rate over the life of the policy. It is often used in conjunction with a mortgage or other debts that decrease over time. Because it provides less cover over time, it tends to have lower premiums than other forms of life insurance.
Modified Life Insurance is a type of whole life policy where the premium is typically lower in the first few years and then increases afterwards.
Out of these options, Decreasing Term Life insurance is characterized by the least expensive premium because the coverage decreases over time, which reduces the risk for the insurer.