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A producer adds a 20-year decreasing term rider to a $100,000 whole life base to cover a mortgage. Compared with a level term rider of the same initial face and term, the decreasing term rider:
Has a face amount that declines on a set schedule but a premium that stays level, making it cheaper than equivalent level term
BHas a level face amount that holds steady throughout the entire rider term while the premium decreases gradually year over year as the insured grows older
CHas both the face amount and the premium decreasing steadily over time, with the two declining together at exactly the same proportional rate every year
DHas a face amount that increases each year to track consumer inflation while the level premium simultaneously decreases over the course of the rider term
Why this is the answer
A decreasing term rider is structured so the death benefit declines on a predetermined schedule — most often tracking a mortgage amortization, hence the colloquial label 'mortgage protection insurance.' The premium, however, remains level throughout the rider term. Because the average amount at risk over the term is lower than a level-face equivalent, the level premium of a decreasing term rider is meaningfully cheaper. Level term riders hold both face and premium constant for the term, while increasing term riders (CPI-indexed or stepped) raise the face amount over time, with premium typically increasing or front-loaded.
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