Fixed Premium means what about the premium over the contract?

Fixed Premium means what about the premium over the contract?

• A. The premium is determined by the insurer and remains fixed and level throughout the contract.
• B. The premium changes with the insured's age.
• C. The premium varies with market returns.
• D. The premium is paid only at the end.

Answer: (C)

Fixed premium means the amount paid each period stays the same for the life of the contract. This payment is not tied to the insured’s age or to market performance, and it isn’t a single lump sum paid at the end. With a level premium, you have predictable budgeting: you pay the same amount regularly, while the policy’s cash value grows according to the contract’s credited interest or dividends and the benefits are funded as specified.

Fixed premium means the amount paid each period stays the same for the life of the contract. This payment is not tied to the insured’s age or to market performance, and it isn’t a single lump sum paid at the end. With a level premium, you have predictable budgeting: you pay the same amount regularly, while the policy’s cash value grows according to the contract’s credited interest or dividends and the benefits are funded as specified.