For Example, $50,000 Five-Year Policy Might Decrease to $40,000 in Benefits

question 426

Multiple Choice

For example, $50,000 five-year policy might decrease to $40,000 in benefits payable the second year, to $30,000 the third year, to $20,000 the fourth year, and to $10,000 in the final year. This is an example of:

• A) Level term insurance policies
• B) Decreasing term life insurance policies
• C) Modified premium whole life policies
• D) First-to-die policies

---

Definitions:

Psychological Test

An instrument designed to measure unobserved constructs such as a person's cognitive abilities, behaviors, or personality traits.

Standardization

The process of making something conform to a standard in order to ensure consistency and comparability across different instances or measurements.

Projective Test

A type of personality test designed to let a person respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Unconscious Feelings

Emotions and desires that reside in the unconscious mind, influencing behavior without one's awareness.