Primerica Life Producer Exam Practice Test 2025 – Complete Prep Resource

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What does the term “fixed premium” mean in life insurance?

A premium that varies based on the policyholder's age

A premium that remains the same throughout the life of the policy

The term "fixed premium" in life insurance refers to a premium that remains the same throughout the life of the policy. This means that once the policyholder establishes their premium amount at the inception of the policy, they will pay that same amount for the duration of the policy, without any increases or decreases.

This feature is particularly important for policyholders as it provides predictability and stability in their financial planning, allowing them to budget effectively over the long term. Policies with fixed premiums can be beneficial because they protect the policyholder from potential future increases in premiums that might occur with other types of policies or benefits which may adjust based on age or health changes.

In contrast, other answer choices reflect various premium structures that do not offer the same level of consistency and predictability, such as premiums that vary based on age or increase over time.

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A premium that only applies during the first year

A premium that increases over time

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