In a Level Premium Term policy, how are the premium and face amount structured?

In a Level Premium Term policy, both the premium and the face amount are structured to remain constant throughout the term of the policy. This means that the policyholder pays the same premium for the entire duration of the policy, making it easier to budget for future insurance costs. The face amount, which is the death benefit paid to beneficiaries upon the insured's death, also stays the same during the policy period, providing peace of mind that the benefit will not decrease over time.

This structure is particularly appealing to individuals seeking predictable expenses and assurance that their beneficiaries will receive a fixed amount upon their death, making option A the correct choice. Long-term financial planning becomes simpler with this consistent premium and face amount, as they do not change regardless of the insured's age or health status as time goes on.