A10-year level term life insurance policyhas a fixed premium and a fixed face amount (death benefit) for the entire 10-year term. The premium and death benefit remain constant, and there is no cash value or dividend accumulation, as term life is not a participating policy.
Option A: Incorrect. Conversion to whole life is an optional rider, not automatic at the end of the term.
Option B: Incorrect. In a level term policy, the premium does not increase during the term; it remains constant.
Option C: Incorrect. Term life policies do not pay dividends or accumulate cash value, so the face amount does not increase.
Option D: Correct. Both the premium and the $100,000 face amount remain constant for the 10-year term.
This question falls under the Prometric content outline section on “Life Products,” which covers term life insurance characteristics.
[:, Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: General Knowledge – Life Insurance)., Oklahoma Insurance Department, Title 36 O.S. § 4002 (definitions of life insurance products)., Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing., ]
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