It's important to understand the three different types of term life insurance before you shop for a policy.
The three kinds are called level, increasing, and decreasing.
For all three kinds of term life insurance, the premium stays the same for the life of the contract, but that's where the similarity for all three ends.
Level term life is renewable annually.
If you're shopping around, you may see these types of policy under the category of annually renewable term, or ART.
Since the policy renews each year, the premium also goes up each year.
Depending on which company you choose, you may see the premium increase a large amount each year or just a small amount.
One good thing about ART policies is that you never have to show proof that you're still in good health.
If the policy is renewable, then it means you can keep renewing it, no matter what your health looks like.
It also means you'll always have life insurance as long as you keep paying the premium.
Level term life insurance policies can also take the form of a 10, 20, or 30 year renewable term.
The nice thing about these longer terms is that the premium doesn't go up every single year.
It stays the same for the life of the term and increases only if you renew when your term is up.
Companies may offer policies in varying term lengths, although 10, 20, and 30 years are the most common ones you'll find when you're shopping.
One downside to buying a renewable term that's longer than a year is that they tend to be more expensive.
Just make sure when you're comparing the various level term life insurance policies that you keep in mind how long the term is and consider about how much more you'll pay each time the premium goes up.
The three kinds are called level, increasing, and decreasing.
For all three kinds of term life insurance, the premium stays the same for the life of the contract, but that's where the similarity for all three ends.
Level term life is renewable annually.
If you're shopping around, you may see these types of policy under the category of annually renewable term, or ART.
Since the policy renews each year, the premium also goes up each year.
Depending on which company you choose, you may see the premium increase a large amount each year or just a small amount.
One good thing about ART policies is that you never have to show proof that you're still in good health.
If the policy is renewable, then it means you can keep renewing it, no matter what your health looks like.
It also means you'll always have life insurance as long as you keep paying the premium.
Level term life insurance policies can also take the form of a 10, 20, or 30 year renewable term.
The nice thing about these longer terms is that the premium doesn't go up every single year.
It stays the same for the life of the term and increases only if you renew when your term is up.
Companies may offer policies in varying term lengths, although 10, 20, and 30 years are the most common ones you'll find when you're shopping.
One downside to buying a renewable term that's longer than a year is that they tend to be more expensive.
Just make sure when you're comparing the various level term life insurance policies that you keep in mind how long the term is and consider about how much more you'll pay each time the premium goes up.
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