In a "jumping juvenile" life insurance policy, the face amount:

Why A is correct

A jumping juvenile policy is whole life insurance on a child whose face amount automatically jumps to a higher amount, commonly doubling, at a specified age such as 21, without requiring a medical exam or evidence of insurability. This lets a parent lock in coverage for the child at an early age and a low premium, with the premium based on the child's original age. The increase occurs automatically under the policy's terms and gives the young adult an affordable head start on permanent coverage.

Why the other options are wrong

• B) The benefit increases, not decreases, as the child grows into adulthood.
• C) The policy pays its death benefit at any age; the jump is a coverage increase, not the only trigger for payment.
• D) The premium generally does not increase each year; original-age pricing is a feature of the contract.

Memory hook

Jumping juvenile: face amount jumps up around age 21, no medical exam needed.

Why A is correct

A jumping juvenile policy is a permanent life insurance policy on a child that contains a provision automatically increasing the face amount at a designated age — commonly around age 21 — without any medical exam or evidence of insurability. This feature lets a parent lock in a modest amount of coverage now and increase protection later when the child is older, regardless of the child's health. The premium structure is set so the increased coverage is financed as scheduled, and the parent generally controls the policy until the child reaches the age of majority.

Why the other options are wrong

• B) Jumping juvenile policies do not require annual medical exams; the hallmark feature is an automatic increase with no new evidence of insurability.
• C) Coverage does not stop at 21; the face amount increases at that age and the permanent protection continues.
• D) There is no provision allowing the parent to unilaterally raise premiums each year; the premium schedule is fixed in the contract.

Memory hook

Coverage jumps at the milestone age — no exam, no questions.

Why A is correct

A jumping juvenile policy is a whole life policy on a child whose face amount is set to increase automatically, usually doubling, when the child reaches age 21 (or a similar specified age). The premium is based on the child's very young age, and the increase occurs without an increase in premium and without evidence of insurability. This lets parents lock in low, insurable coverage at a level the child can later continue as a young adult.

Why the other options are wrong

• B) The face amount rises at age 21; it does not decrease with the child's attained age.
• C) The benefit does not remain level; the automatic increase is the defining feature of the jumping juvenile product.
• D) No medical exam or proof of insurability is required for the automatic increase at the stated age.

Memory hook

Jumping juvenile: the death benefit jumps up at 21, premium stays put. Cheap childhood insurance that grows up with the child.