Missouri Life Insurance

Front 1

What is term life insuranc?

Back 1

Death benefits = face amount = policy proceeds - money survivors receive.
Temporary protection, because it only provides coverage for the term of years that is specified in the contract. If the insured dies during this term, the policy pays the death benefit to the beneficiary. However, if the policy is canceled or expired prior to the insured's death, nothing is payable. There are no cash value that can be drawn upon or borrowed against while the insured is alive. There are no "living benefits" associated with this type of insurance, unless there is an accelerated death benefit attached. This policy providesthe greatest amount of coverage for the lowest premium, compared to any other form of protection.

Front 2

What does pure death protection mean?

Back 2

Insurance premiums are paid for protection in the event of death or disability. There is no cash value in the policy. Term life is an example of this.

Front 3

What are the three basic types of term coverage available?

Back 3

Level, increasing, and decreasing. (Regardless of the type of term insurance purchased, the premium is often level throughout the term of the policy. Only the amount of the death benefit may fluctuate, depending on the type of the term.)

Front 4

When dealing with term life what is the renewable provision?

Back 4

This a term to term provision, that allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability. Premium will be based on insured's current age.

Front 5

When dealing with term life what is the covertible provision?

Back 5

This is a term to whole life provision that provides the policyowner the right to change the policy to a permanent insurance policy without evidence of insurability. The premium will be based on the insured's attained age at the time of conversion.

Front 6

What is level term insurance?

Back 6

This is the most common type of temporary insurance protection purchased. It provides a level deaht benefit for a premium that increases each year with the age of the insured.

Front 7

Many policies are both renewable and convertible. What is the difference between these two provisions?

Back 7

Renewable is a term to term provision, where you can renew without evidence of insurability. Whereas, Convertible has a option to go from term to whole life without evidence of insurability.

Front 8

With term insurance what happens to the premium as one's age increase

Back 8

The premiums increases.

Front 9

What is annual renewable term?

Back 9

One year term = change after
This is the purest form of term life. Death benefits remains level and the policy may be guaranteed to be renewable each year but the premium increases annually as the probability of death increases.

Front 10

What is level premium term?

Back 10

Stay the same througout the term of the policy.
Provides a level death benefit and a level premium during the during the policy term. Once the term ends, premium will be based on the insured's attained age at the time of renewal.

Front 11

What is the re-entry option?

Back 11

This wben some policies contain an option where the insured, upon the end of the term policy with guraranteed renewavle option, may answer medical questions to prove insurability and qualify for a discouted premium rate.

Front 12

Describe Annual Renewable Term insurance?

Back 12

This is the purest form of term life. Death benefits remains level and the policy may be guaranteed to be renewable each year but the premium increases annually as the probability of death increases.

Front 13

What is decreasing term policies?

Back 13

This feature a level premium and a death benefit taht decreased each year over the duration of the policy term. This type of policy is primarily used when the amount of needed protection is "time-sensitive", or decreases over time. Its purchased to insure the payment of a mortgage or other debts if the insred dies prematurely. The amount of the coverage thereby decreased as the outstanding loan balance decreases each year.

Front 14

What are whole life policies?

Back 14

This is a permanent policy protection, since as long as the premium is paid coverage will continue for the life of the insured. Both the premiums and death benefit are guaranteed and will remain level for life. This policy build cash values (living benefits), which the policyowner can borrow against, or is entitled to, in the event the policy is surrendered.

Front 15

What is nonforfeiture values?

Back 15

These are values in a life insurance policy that the owneer does not forfeit even if he or she ceases to pay premiums. The cash value does not accumulate until the third policy year and grows tax deffered. The policyowner may also borrow the cash value of a whole life policy. Although this loan does not have to be repaid, the amount of any outstanding loan, interest, will be deducted from the policy face amount upon the insured's death. Additionally the insurer may defer payment of any loan request for up to 6 months.

Front 16

What happens if the insured lives to be 100, in a whole life insurance policy?

Back 16

If the insured lives to the age of 100, the company pays the face amount of the policy to the policyowner. The cash value, which is created by the accumulation of premium, is scheduled to equal the face amount of the policy at age 100.

Front 17

What is continuous premium (straight life)?

Back 17

This basic policy charges a level annual premium for the lifetime of the insured and provides a level, guaranteed death benefit. If the insured lives to the age of 100, the policy endows (matures) and the face amount is paid to the insured at that time. During the insured's lifetime the straight life policy builds cash value. It is required by law that a whole life policy develops cash value no later than the end ofthe third policy year.

Front 18

What is limited pay whole life?

Back 18

This variation of whole life insurance charges a level annual premium and provides a level, guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to the age of 100. However, limited-pay life is designed so that the premiums for coverage will be completely paid-up well before age 100. This type of policy is for those who dont want to be paying premiums beyond a certain point in time.

Front 19

What is single premium whole life?

Back 19

Designed to provide a level death benefit to the insured's age 100 for a one time, lump sum payment. A significant difference other than the premium-paying period is that a single premium whole life policy will generate immediate cash value.

Front 20

What is adjustable life?

Back 20

Life insurance that provides the policyowner with the best of both worlds (term and permanent coverage). The insured typically determines how much coverage he or she needs and the amount of premium they can afford. The insurer will then determine the appropriate type of insurance to meet the insured's needs. The caskh value of this type of insurance only developes when the premiums paid are more than the cost of the policy.

Front 21

What is universal life?

Back 21

Also is called "flexible premium adjustable life." This insurance policy is a combination of flexible premiums and adjustable life insurance. One way in which universal life differs from adjustable life is that the policyowner has the flexibility to increase the amount of premium going into the policy and to later decrease it again. In fact, the policyowner may even skip paying a premium and the policy will not lapse as long as there is sufficient cash value at the time to compensate for the nonpayment of the premium. As well as being a flexible policy, it is also an interest-sensitive policy. The insurer credits the cash value in the policy with a current (nonguaranteed) interest rate and backs the cash value with a lower guranteed (contract) rate of interest.

Front 22

Continuous premiums straight life differs from 20 year limited pay life in what way?

Back 22

Limited-pay charges a level annual premium just like straight life. It alsou provides a level, guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. However, unlike straight life, limited-pay life is designed so that the premiums for coverage will be completely paid-up well before age 100. Ex. A more common version of limited-pay life are 20-pay life whereby the coverage is completely paid for by the insured's age 65.

Front 23

Does the death benefit of an Adjustable Life Policy automatically increase with inflation?

Back 23

No

Front 24

What ways do the universal life differ from the adjustable life?

Back 24

The policyowner has the flexibility to inscrease the amount of premium going into the policy and later decrease it again. The policy owner may even skip paying a premium and the policy will not lapse as long as there is sufficient cash value at the time to compensate for the nonpayment of premium.

Front 25

What are the two types of interest rate for universal life?

Back 25

Contract and current rate.

Front 26

What are the two components that make up an universal policy?

Back 26

The insurance component is actually renewable term insurance and the cash account accumulates on a tax deferred basis each year and earns either the guranteed cotnract rate or the current rate, whichever is higher. When the policyowner pays the premium for a universal policy, certain expenses are deducted and the balance (net premium) is allocated to the cash value account.

Front 27

What is the joint life (first-todie) policy?

Back 27

This is asingle poicy that is designed to insure two or moe lives. This policy cna be in the form of term insurance or permanent insurance. The premium for this poicy would be less than for the same type and amount of coverage on the same individuals.

Front 28

Joint life is different than individual whole life policy in what way?

Back 28

* The premium is based on a joint average age taht is between the ages of the insureds.
* The death benefit is paid upon the first death only.

Front 29

What is the juvenile life insurance policy?

Back 29

Any life insurance written on the life of a minor. The face amount increases at a predetermined age, often age 21. The face amount jumps, but the premium remains level.

Front 30

If one doesn't accept group term insurance during the initial open enrollment period, what will the insurance company try to avoid by asking medical questions?

Back 30

Adverse Selection

Front 31

What is group life insurance?

Back 31

This type of policy is written for employee-employer groups, but other types of groups are also eligible for coverage. It is usually written as annually renewable term insurance.

Front 32

What two features that distinguish group insurance from individual insurance?

Back 32

* Evidence of insurability is usually required.
* Participants (insureds) under the plan do not receive a policy, nor do they own or control the policy. Instead, the participants are issued certificates of insurance evidencing that they have coverage.

Front 33

Since the employees do not receive the policy, who do they get, and what do the employee get?

Back 33

The actual policy (master policy) is issued to the sponsor of the group, which is often an employer. The group sponsor is the policy holder and is the one that exercises control over the policy. The employee are issued certificates of insurance evidencing that they have coverage.

Front 34

How does group underwriting different from individual insurance?

Back 34

Evidence of insurability is not required of each participant unless he or she is enrolled for coverage outside of the normal enrollment period. Instead group insurance is based on the group characteristics and makeup.

Front 35

What are the characteristics that a group underwriter looks for?

Back 35

Purpose of the group
Size of the group
Turnover of the group
Financial strength of the group

Front 36

What are the eligibility requirements for group insurance?

Back 36

The group isurance plans may be sponsered by employers, labor unions, and other organizations formed for a reason other than purchasing insurance. There is a 10-person minimum for group life insurance plans in many states. The group must be formed for a reason other than purchasing insurance.

Front 37

What happens if the policyowner dies during the conversion period?

Back 37

The death benefit must be paid, whether or not the application for an individual policy was completed.`

Front 38

What does it mean to converse to individual policy?

Back 38

If an emloyee terminates membership in the insurance group, the employee has the right to change to an individual whole life policy without proving insurability (The insurere will determine what type(s) of policy an employee may change to, but it must be issed at a standard rate.) The face amount or death benefit will be equal to the group term face amount but the premium will be higher.

Front 39

What is credit life insurance?

Back 39

A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor. It may be written as individual policies or a group plan. When written as a group policy, the creditor is the owner of the master policy, and each debtor receives a certificate of insurance.

Front 40

Which of the following is incorrect regarding whole life insurance?

a) Cash value exceeding the premium paid is taxable.

b) Premiums are not tax deductible.

C) Dividens interest is taxable.

D) Policy loans are taxable.

Back 40

D) Policy loans are not taxable.

Front 41

A life insurance policy that will pay the face amount should the insured die anytime during the premium paying period, but pay nothing if death occurs after the premium paying period ends are all of the following except:

a) a decreasing term policy

b) a moving term policy

c) a level term policy

d) an increasing term policy

Back 41

B) A term policy pays the face amount should the insured die at any time while the policy is enfore. After the premium payment period ends there is no coverage. Decreasing term, increasing term, and level term are all types of term policies.

Front 42

A life insurance policyowner skips her premium payment, but the policy does not lapse. Instead the premium is deducted from the cash value of the policy. What type of policy is this?

a) variable life

b) adjustable life

c) flexible life

d) universal life

Back 42

D Universal Life

One way that universal life differs from adjustable life is that the policyowner has the flexibility to increase the amount of premium going into the policy and later decrease it again. In fact, the policyowner may even skip paying the premium and the policy will not lapse as long as there is sufficient cash value at the time to compensate for the nonpayment of premiums.

Front 43

How does the cash value of a universal life policy accumulate until withdrawn?

a) as long term gains

b) tax deferred

c) as short term gain

d) slowly

Back 43

B) Taxed deferred

Money in the cash value of the universal life grows tax deferred until withdrawn.

Front 44

In a group life insurance policy, an employer may select all of the following except?

a) the beneficiary

b) the type of insurance

c) the amount of insurance

d) the premium payor.

Back 44

A) The beneficiary

Employees must be allowed to select the beneficiary.

Front 45

Bill have a level term life insurance policy that is guaranteed renewable and also includes a reentry provision. The reentry provision would allow Bill to renew the policy and:

a) increase the face amount without evidence of insurability.

b) change the type of insurance witho evidence of insurability.

c) pay a lower premium by proving insurability.

d) change the type of insurance on the anniversay without evidence of insurability.

Back 45

C) Pay a lower premium by proving insurability.

Front 46

Whole life policies have all of the following characteristics except:

a) its considered permanent insurance

b) it provides a saving element.

c) it comptemplates payment of the face amount.

d) premiums increase as the insured gets older.

Back 46

D. Premiums increase as the insured gets older.

Premiums of a whole life policy are set to remain level for the term of the contract.

Front 47

Diane owns a whole life policy and dies at age 95. What portionof the policy's value will the insurance company not pay to her beneficiary?

a) 50% of the cash value

b) the insurance company will pay both the face and cash value of her policy.

c) cash value

d) face value

Back 47

C) Cash value

If an insured owns a whole life policy and dies prior to age 100, the insurance company pays the face amount of the policy and retains the cash value.

Front 48

Which option for universal life has a death benefit that increases gradually as the cash value increases?

a) option a

b) option b

c) both option a & b

d) option c

Back 48

B) option b

Under option b the death benefit includes the annual increase in cash value so that the death benefit gradually increases each year by the amount the cash value increases. At any point in time, the total death benefit will always be equal to the face amount of the policy plus the current amount of the cash value. Of course there is an extra premium charge for this option on the policy.

Front 49

Which one of the following is not one of the three basic types of coverage that are available, based on how the face amount changes during the policy term?

a) level

b) increasing

c) renewable

d) decreasing

Back 49

C) renewable

There are three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term: Level, increasing and decreasing. Regardless of the type of term insurance purchased, the premium is often level throughout the term of the policy. Only the amount of the death benefit may fluctuate.

Front 50

An adjustable life policy can assume the form of?

a) only term insurance

b) only permanent insurance

c) neither term nor permanent insurance.

d) either term or permanent insurance.

Back 50

D) Either term or permanent insurance.

Term or Permanent insurance can cover an adjustable life policy.

Front 51

What characteristic would an underwriter be most interested in when determining the risk associated with issuing a group insurance policy?

a) average education level of the group.

b) proof of insurablility from individual group members.

c) financial strength of the group.

d) claim history of new group members.

Back 51

C) Financial strength of the group.

There are four main areas taht an underwriter needs to consider when evaluating the insurability of a group: group size; purpose, turnover, and strength. Potential members would not need to provide proof of insurability, unless they enter into the policy after the open enrollment period.

Front 52

Premiums are level throughout the term of all the following kinds of policies except:

a) moving term

b) decreasing term

c) level term

d) increasing term

Back 52

A) Moving

Regarless of the type of term insurance purchased, the premium is often level throughout the term of the policy. Only the amount of the death benefit may fluctuate.

Front 53

Karl and Lois, age 22, has been married for 2 years and is expecting there first child. They live in an apartment but expect to purchase a home as soon as they have saved enough for a down payment. In order for Karl to offer the most financial security for his family, he should consider purchasing:

a) annual renewable term life insurance

b) variable life insurance

c) industrial life insurance

d) decreasing term life insurance.

Back 53

A) Annual renewable term life insurance.

Annual renewable term life insurance would offer the most insurance at the lowest cost.

Front 54

Mary wants both protection and savings and is willing to pay premiums to the age of 65. The policy she will chose is:

a) life annuity, period certain

b) increasing term insurance

c) limited pay whole life insurance

d) 10-year endowment

Back 54

Premiums payment will cease at her age 65, coverage will contine to her death or age 100.

Front 55

Jack purchased a joint life 100,000 policy, that covered his life and his wife Jill. Eight years later, Jack dies in an automobile accident. How much will Jill receive from the policy?

a) nothing

b) 50,000

c) 100,000

d) 200,000

Back 55

C) 100,000

Because Jack died first, the policy will pay 100,00 death benefit to Jill.

Front 56

What type of insurance must a person buy who wishes to pay a level premium, and have a guaranteed death benefit.

a) increasing term life

b) group life

c) modified life

d) whole life

Back 56

D) Whole life

Front 57

Sarah purchased a continuous whole life policy. All of the statements concerning her policy are true except:

a) Sarah will be required to pay a premium each year that is based on her attained age.

b) Sarah has the right to the cash value before the policy mature date.

c) the face amount will remain constant while the policy is in effect.

d) Sarah will continue to pay annual premiums, even if she retires at age 65.

Back 57

A) Sarah will be required to pay a premium each year that is based on her attained age.

Annual premiums, will be based upon the issue age.

Front 58

All the following is an example of Universal life policy except

a) in fact, universal life policy is a combination of term insurance and a separate savings account joined in a single contract.

b) The planned premium pays for mortality changes and expenses and any excess is returned to the policyowner.

c) the policyowner reserves the right to adjust the mortality charges and/or interest rate.

d) the policy is a cash value account at a guaranteed interest rate and endowment insurance.

Back 58

B) The planned premium pays for mortality changes and expenses and any excess is returned to the policyowner.

Any premiums amount not required to pay for morality and expenses, create the cash account.

Front 59

Which of the following statements are true regarding whole life?

a) policy loans are tax deductible

b) lump sum death benefits are not taxable.

c) dividens interest is not taxable

d) premiums are tax deductible.

Back 59

B) lump sum death benefits are not taxable.

Dividen interest is taxable; policy loans are not tax deductible; premiums are not tax deductible.

Front 60

Bob owns an adjustable life policy. Sometime in the future he wants to increase the death benefit. Which of the following is correct regarding this change?

a) death benefit can be increased only when the policy have developed a cash value.

b) the death benefit can be increased only by exchanging the existing policy for a new one.

c) the death benefit can be increased by providing evidence of insurability.

d) the death benefit cannot be increased.

Back 60

C) the death benefit can be increased by providing evidence of insurability.

Bob would need to show insurability for the amount of the insurance.

Front 61

All of the following are true regarding a decreasing term policy EXCEPT?

a) The payable premium amount steadily declines throughout the duration of the contract.

b) all other factors being the same, it has a lower premium outlay than level term.

c) the contract only pays in the event of death during the term and there is no cash value.

d) the face amount of the contract steadily declines throughout the duration of the contract.

Back 61

A) The payable premium amount steadily declines throughout the duration of the contract.

Premiums remain level with a decreasing term policy. Only the face amount decreases.

Front 62

All of the following are characteristics of a group life insurance plan EXCEPT?

a) The participants receive a Certificate of Insurance as there proof of insurance.

b)a minimum number of participants are required in order to underwrite the plan.

c) the cost of the plan is determined by the average age of the group.

d) there is a requirement to prove insurability on the part of the participants.

Back 62

D) there is a requirement to prove insurability on the part of the participants.

There is no individual underwriting for group life insurance.

Front 63

At age 30, Tom wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accomodate those changes as they occur. Which of the following policies would most likely fit Tom's needs?

a) Decreasing term

b) adjustable life

c) single premium whole life

d) modified life

Back 63

B) adjustable life

Adjustable life policies allow for increases or decreases in the face amount or premium, so long as the premium is sufficient to pay for the mortality. Any increase in face amount requires proof of insurability.

Front 64

Which of the following is generally not considered when underwriting group insurance?

a) the group's past claim experience.

b) the size of the group

c) the group's medical history.

d) the nature of the group.

Back 64

C) the group's medical history.

Group life insurance is written on a group, and not on an individual basis. Each individual completes an application that identifies the participants and beneficiary. Then, the group is based on its nature and past claim experience. Generally, medical questions are not necessary.

Front 65

What type of insurance would a person want to buy who wishes to pay level premium, and have a guaranteed death benefit?

a) modified life

b) whole life

c) increasing term life

d) group life

Back 65

B) whole life

Whole life insurance policies in general are useful for an individual who wishes to lock into a level premium amount that will not increase over his or her lifetime. This is particularly for an individual using insurance as a tool in estate planning.

Front 66

Under universal life option __ the death benefit includes the annual increases in cash value so that the death benefit gradually increases each year by the amount that the cash value increases?

a) c

b) a & b

c) a

d) b

Back 66

B) a & b

Under option b the death benefit includes the annual increases in cash value so that the death benefit gradually increases each year by the amount that the cash value increases.

Front 67

Which of the following is NOT a way to determine the interest rate in a universal life policy?

a) some insurers have their current interest rate declared by the company board of director each year.

b) Some insurers tie their current interest rate to treasury bills.

c) some insures maintain a profit margin between the interest that they credit on their in-force policies and the interest that they are earning on their own investment portfolio.

d) some insurers base their interest rate on the estimate market for the life of the policy.

Back 67

D) some insurers base their interest rate on the estimate market for the life of the policy.

Front 68

In a universal life policy, the insurer credits the cash value in the policy with a __ interest rate and backs the cash value with a lower ___ rate of interest.

a) nonguaranteed; current

b) guaranteed; noncurrent

c) current; nonguaranteed

d) current; guaranteed

Back 68

D) current; guaranteed

The insurer credits the cash value in the policy with a current (nonguaranteed) interest rate and backs the cash value with a lower guaranteed (contract) rate of interest.

Front 69

Ron buys a 5 year level term policy with a face amount of 100,000. The policy also contains renewability and convertible options. When Ron renews the policy in five years:

a) the premium will increase each year during the next five year term as the face amount increases each year.

b) the premium will increase because Ron will be five years older than when he originally purchased the policy.

c) the premium will remain the same for the new five year term.

d) the premium will decrease for the new five year term since Ron is now a lesser risk for the company.

Back 69

B) the premium will increase because Ron will be five years older than when he originally purchased the policy.

Renewal rates are based upon attained age.

Front 70

A policy that allows the beneficiary to collect both the death benefit and the cash value upon the death of the insured is:

a) whole life

b) universal life,option b

c) variable life

d) joint life

Back 70

B) universal life,option b

A policy that allows the beneficiary to collect both the death benefit and the cash value upon the death of the insured is universal life, option b.

Front 71

Of the three primary types of term insurance sold, level term has the ___ premiums.

a) most inconsistent

b) lowest

c) most level

d) highest

Back 71

D) highest

Of the three primary types of term insurance sold, level term has the highest premiums.

Front 72

Ed, age 27, has limited income and can only budget $15 per month for life insurance. Which of the following life insurance policies would provide the largest face amount for that amount of premium?

a) 10 year endowment

b) ordinary whole life

c) 30 pay life insurance

d) term to age 65

Back 72

D) term to age 65

Because a term life is not accumlating cash value, the cost is lower than those policies that do.

Front 73

Which of the following is not included in the types of whole life insurance that is offered?

a) straight life

b) limited life

c) increasing term

d) single premium

Back 73

C) increasing term

There are several types of whole life policies. The first three, straight life, limited payment, and single premium, are the basic form of whole life. They are based on how the policyowner pays the premium. It is important to note that although the method of payment differs, they all still operate as the traditional whole life policy described above. All the other types of whole life policies are specialized types of whole life policies.

Front 74

All of the following are true regarding the covertibility option under a term life insurance policy EXCEPT:

a) most term policies contain a convertibility option.

b) upon conversion, the premium for the permanent policy will be based upon attained age or the original issue age.

c) upon coversion the death benefit of the permanent policy will be reduced by 50%.

d) covertible term insurance is convertible up to the full term death benefit.

Back 74

C) upon coversion the death benefit of the permanent policy will be reduced by 50%.

Convertible term insurance is convertible up to the full term death benefits.

Front 75

What characteristics make whole life permanent protection?

a) guaranteed level premium

b) flexible premiums

c) both guaranteed death benefits and guranteed level premiums

d) guranteed death benefits.

Back 75

C) both guaranteed death benefits and guranteed level premiums.

Whole life policies are referred to as permanent protection, since as long as the premium is paid coverage will continue for the life of the insured. Both the premiums and the death benefit are guaranteed and will remain level for life. Whole life insurance policies in general are useful for an individual who wishes to lock into a level premium amount that will not increase over his or her lifetime.

Front 76

Under a 20 pay whole life policy, in order for the death policy to pay the death benefit to the beneficiary the premium must be paid:

a) for 20 years

b) until age 65

c) for 20 years or until death, whichever occurs first.

d) until the policyowners age 65.

Back 76

C) for 20 years or until death, whichever occurs first.

Under a 20 pay life policy, all of the premiums necessary to cause the policy to endow at the insured's age 100 are paid during the first 20 years; however, if the insured dies before all of the planned premiums are paid, the beneficiary will recieve the face amount as a death benefit.

Front 77

Concerning Juvenile Life insurance, which of the following statement is incorrect?

a) usually a parent or guardian is the applicant for insurance on the life of a minor.

b) it can be a limited premium payment policy.

c) juvenile life is classified as any life insurance written on the life of a minor.

d) juvenile life is classified as any life insurance purchased by a minor.

Back 77

D) juvenile life is classified as any life insurance purchased by a minor.

Juvenile life insurers the life of a minor. It does not need to be purchased by a minor.

Front 78

Credit life insurance can be written as:

a) group term

b) level term

c) inceasing term

d) decreasing term

Back 78

D) decreasing term

Credit life insurance is usually written as a decreasing term.