n NISM Certifications
NSM General NISM
Medium

How does level premium work in life insurance?

Practice question from IC 38 Mock Test 11 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Premiums increase with age to cover death claims of those dying at higher ages

  2. B

    Premiums decrease with age to cover death claims of those dying when young

  3. Premiums are fixed and remain constant throughout the contract period

    Correct answer

  4. D

    Premiums are not required in life insurance contracts

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.