Which characteristic describes increasing term life insurance?

• A. The premium remains level and the death benefit remains level.
• B. It is a separate policy with increasing cash value.
• C. The death benefit is fixed and does not change.
• D. The premium and death benefit increase over the term, and it is often added as a rider.

Answer: (D)

Increasing term life insurance is designed so the death benefit grows over the term. As time passes, the amount paid to beneficiaries increases to reflect rising financial needs, such as a growing mortgage or longer-term expenses. Because the coverage amount is increasing, the cost to insure typically rises as well, so the premiums increase over the term. This type of growth is commonly provided as a rider attached to a base policy, rather than as a separate policy with its own cash value.