Question

Which statement concerning a decreasing term life policy is accurate?

A. Cash value decreases over the policy period.
B. Premium decreases over the policy period.
C. Face amount decreases over the policy period.
D. Face amount stays the same over the policy period.

Answer 1

The accurate statement concerning a decreasing term life policy is that the face amount decreases over the policy period. option b is answer

Step-by-step explanation:

The accurate statement concerning a decreasing term life policy is that the face amount decreases over the policy period.

Unlike a whole life policy, which has a cash value that accumulates over time, a decreasing term life policy is designed to provide coverage for a specific period of time, with a decreasing face amount. This means that as the policy progresses, the amount of coverage decreases.

For example, let's say you have a decreasing term life policy with a face amount of $200,000 and a term of 20 years. In the first year, your coverage may be the full $200,000, but by the 10th year, it may have decreased to $100,000. option b is answer