Which statement describes Level Premium term insurance?

• A. The term length is longer than one year, and premiums change upon renewal.
• B. The term is one year and the premium remains level throughout each term.
• C. The policy never renews after the initial term.
• D. The death benefit decreases over time.

Answer: (A)

Level Premium term insurance means you pay a level (unchanging) premium for the length of the term, and the term itself is longer than a single year. At renewal, the premium typically increases because you’re older and the risk pool changes. So the statement that the term length is longer than one year and premiums change upon renewal best describes Level Premium term insurance. The other ideas don’t fit: a one-year term isn’t the usual representation of this product, renewals are common, and the death benefit is generally level for the term rather than decreasing over time.