What is characteristic of level term assurance?

Level term assurance is designed to offer a fixed sum assured that remains constant throughout the policy term. This feature is significant because it enables policyholders to have clarity and certainty regarding the amount that will be paid out, regardless of when a claim is made during the policy's duration. This characteristic enhances financial planning, as beneficiaries will receive the same amount irrespective of fluctuations in the market or changes in the policyholder's circumstances over time.

The other options do not accurately describe level term assurance. For instance, a decreasing sum assured would typically relate to a decreasing term assurance product, and increasing premiums would generally apply to policies where the amount of coverage grows or where annual premiums adjust for age or risk factors. Lifelong coverage is associated with whole life policies, not term assurance, which is specifically limited to a defined term.