Which statement regarding increasing term insurance is accurate?

The accurate statement regarding increasing term insurance is that it is sold as a rider on a permanent life policy. Increasing term insurance is a type of term life insurance that provides a death benefit that increases over time. However, it is often attached as a rider to a permanent life insurance policy.

This rider allows policyholders to enhance their permanent policy with additional coverage that increases in value, thereby giving them greater protection as their needs evolve over time. The core permanent life policy still offers lifelong coverage and potentially grows cash value, while the increasing term rider adds temporary coverage that escalates.

While there are aspects to consider regarding the other statements, they do not accurately describe the key features of increasing term insurance. For instance, while the premium typically may be lower for term insurance compared to permanent insurance, the comparison with decreasing term insurance is not straightforward—decreasing term insurance's premiums would generally be structured differently. Regarding the easy assumption that cash value increases, term policies, by definition, do not accumulate cash value. Ultimately, understanding the role of riders in insurance policies is critical, and increasing term insurance serves that purpose effectively when utilized with a permanent policy.