Which of the following statements about a decreasing term insurance policy is true?
A) The face amount of the policy decreases during the policy period, and the premium increases.
B) The face amount of the policy decreases during the policy period, but the premium remains level.
C) The premium decreases during the policy period, but the face amount remains constant.
D) Both the premium and the face amount of the policy decrease gradually over the policy period.
Question 2
Bill is attempting to determine how much life insurance to purchase. He has two dependent children and his wife does not work outside of the home.
An advisor suggested that Bill should consider Social Security benefits when doing his life insurance planning. One concern in this regard is the period after Social Security benefits to a widow terminate until they resume again. This period is called the
A) blackout period.
B) dependency period.
C) emergency period.
D) readjustment period.
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