In Whole/Term Life Insurance, what happens to the premium amount over time?

• A. It is paid in a fixed amount each year
• B. It changes monthly
• C. It is paid only at death
• D. It starts high and increases every decade

Answer: (A)

In these life insurance types, the premium is level and predictable. You lock in a fixed, regular payment that doesn’t go up just because you age or time passes. In a whole life policy, the premium stays the same for life, and in a term policy it’s usually level for the term, with renewal often at a higher rate after the term ends. So the best description is that the premium is paid in a fixed amount each year (or per period), making budgeting straightforward. The other options describe scenarios that don’t match how these policies are typically structured.