1. Level term
2. Decreasing term.
Level Term Life Insurance
Basically it is a death benefit. It means if you suddenly die within the specific time frame of your insurance, your beneficiary will get the money.
But if you outlive your level term insurance period, then your beneficiary will not get anything out of it.
Level term insurance has no savings or investing component.
The premium or term life insurance cost for this kind of policy is fixed for the period of years you decided to buy. In other words, it remains the same during the life of the policy.
Normally, people go for 10, 15, 20, and 30 years.
You can buy it online. To get the best level term insurance quotes or rates, you can check out with those highly rated companies listed in credit rating organization, A.M. Best Company.
Decreasing Term Life Insurance
It is also known as Annual Renewal Term Life Insurance.
Similar to the other term life insurance, your beneficiary will only the money if you die during the one year term.
This kind of policy is annual renewal policy. It means you need to renew your policy ever year.
Before you can renew the following year, you are evaluated and the premium is adjusted.
As you get older, naturally your health deteriorates, and the chances of you dying become higher.
So, the premium (payment) that you required to pay would be increased. It means you need to pay more as each year goes by.
But the positive part is that the amount of premium would never increase higher than the amount you signed while making the agreement while buying the policy.
Most folks go for this kind of protection are those who want to cover a mortgage or other type of loan.
Convertible Term Insurance
One reminder. When you go for a renewable term life insurance, you might like to search for those where you can convert the plan into a permanent whole life plan.
Probably at that time, you might not have enough money or the need to go for permanent life insurance as yet.
A convertible term insurance policy allows the insured (you) to covert a term policy to a permanent policy in the future.
You do not have to go any new or additional screening at the time when the policy is converted, regardless of your medical condition.
If you are not too sure which type of term life insurance to buy, you might like to check out with Term Life Insurance Calculator over here.
