Question 1 of 14
Explain why decreasing term insurance is often a better fit for a steadily declining debt than level or increasing term insurance.
Strong Interview Answer
Decreasing term is designed so the death benefit declines on a schedule, which can track a shrinking obligation such as a mortgage. Level term keeps the benefit constant, while increasing term moves in the opposite direction. The key is matching the benefit pattern to the need rather than assuming permanent coverage is required.
What to Listen For
- death benefit declines over time
- matches a declining mortgage or debt
- distinguishes decreasing term from level/increasing term
- needs-based product selection
Caution
Answer from the governing policy/statute and explain the reasoning; do not merely repeat the original multiple-choice stem.