The different types of term life insurance are as follows:

Level term life insurance

Level term life insurance guarantees your premium will stay exactly the same, or level, for the term of your plan. Generally speaking, these guaranteed periods range from 5 to 35 years. The companies keep your payments the same by taking an average of the premiums they would charge you with an annual renewable policy, and spreading the cost over the period certain. In doing so, you will pay more during the early years of the plan, and less in the subsequent years than you would if you had an ART policy. With level term life insurance, the term life rates will have a drastic increase at the end of the level term period, many times by 4 or 5 times the level premium. Level term life offers you a big advantage in that your premiums stay the same throughout the lifetime of your policy. This makes it much easier to plan for the expenses since you know exactly what you are in store for from a premium perspective. On the other hand, if you change policies in the early years, you will end up paying more than you need to for coverage.

Decreasing term life insurance

Decreasing term life insurance features a decrease in your benefits each and every year for the duration of the term. This product is most often used to cover your mortgage payment or to cover other similar items whose costs decrease over time. Typically, this is not a good product for your general life insurance needs, which tend to increase over time.

Convertible term life insurance

Convertible term policies allow you to convert your term life insurance into other types of insurance products during the plan period. Usually, this option provides you with the ability to convert your plan to a type of permanent insurance. Convertibility can offer a tremendous benefit since your insurance needs change over time. In addition, if your health changes during the term period, many times you can convert to a permanent plan without providing new evidence of insurability, enabling you to hold on to your insurance for the long term.

Annual renewable term life insurance

Annual renewable term life insurance is automatically renewed each year up to a specific age limit. As the chances of dying increase dramatically as you get older, your insurance premiums go up each year as the policy renews. With ART, you can buy quite a bit of life insurance for a very low price if you get it at an early age. Don’t kid yourself though, while initially cheap, the premiums can end up costing you quite a bit of money over time.

Renewable term life insurance

Renewable term life insurance automatically allows you to renew your term life policy after the initial term is over, even if you have had negative changes in your health. This is very similar to annual renewable term life, but tends to renew for a longer period of time. Renew ability can be a valuable feature due to the fact that your health can change drastically over the years, but since it has a greater financial risk for the carrier, renewable term life insurance coverage costs more than annual renewable life insurance plans. Renewable term life insurance policies will differ from company to company. Even though you are guaranteed the right to renew you policy at the end of the guaranteed term, you may not have the option to renew for the same term or amount of coverage. Almost without exception, your premiums will increase when and if you decide that you want to renew the term for another period. Please visit our quoting area to get a term life insurance quote today!