The correct answer is: A. In decreasing term policy the premium will fall each year.
A decreasing term policy is a type of life insurance policy that provides coverage for a specific period of time, such as 10 or 20 years. The premium for a decreasing term policy is typically level throughout the policy term, meaning that it does not change. The policy benefit also decreases over time, in line with the decreasing amount of coverage. This type of policy is often used to cover the outstanding balance on a mortgage, as the amount of debt decreases over time.
B. In decreasing term cover the premium is the same throughout the policy duration. This is correct, as the premium for a decreasing term policy is typically level throughout the policy term.
C. Policy benefits will also decrease over the policy period. This is also correct, as the policy benefit for a decreasing term policy decreases over time, in line with the decreasing amount of coverage.
D. Mortgage redemption policy is nothing but a term insurance cover. This is incorrect, as a mortgage redemption policy is a type of decreasing term policy that is specifically designed to cover the outstanding balance on a mortgage.