Which of the following statements about Level Term insurance is true?

Level Term insurance is designed to provide a fixed death benefit for a predetermined period, known as the term. This means that if the insured person passes away during the term of the policy, the beneficiaries will receive the same specified amount of coverage, regardless of when during the term the death occurs. This predictability is a significant advantage, as it ensures that the coverage remains consistent and does not decrease over time.

Additionally, Level Term insurance typically features stable premiums that remain unchanged throughout the life of the policy. This predictability in both coverage and premium payments makes Level Term insurance a popular choice among individuals seeking affordable and reliable protection for a specified time frame, such as the duration of a mortgage or until children are financially independent.

In contrast, other types of insurance or term structures may involve annual renewable terms with fluctuating premiums or increasing costs, which can complicate budgeting and financial planning for policyholders.