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Term Life Insurance – The Different Kinds

It has always been known that there are actually two different kinds of life insurance programs -term life and whole life.

It rather sounds obvious, but with term life, a person is normally just insured for a specific time period – ten, fifteen, twenty, or 30 years. Not many people know this, but there are actually different types of term life insurance programs.

Level Term

This is easily the most popular term life program. With this, you typically pay the same premium throughout the term. It may not accumulate any cash value, however, this remains to be popular because it is cheap.

The prices for term life have even gone down more because of the Internet – people can readily access life insurance quotes and compare prices; sometimes, in a little as under two minutes.

Many people get surprised over the fact that they can be covered for a huge amount of money for as little as $20 month, even when they’re already in their 40’s (provided that they’re in good health).

Annual Renewable Term

If you go for this type of insurance, you are only covered for one year. You will have to renew your policy at the end of the year. Expect increases in your premium as you renew your policy from year to year.

No-Exam Term Life

If you find the requisite medical exams in life insurance programs too much of a hassle, there are other, albeit more expensive, life insurance programs on the market that do not require any exam. With a no-exam term life insurance, you are only required to fill out a questionnaire. (It doesn’t pay to lie on the questionnaire because it can have your policy revoked.)

A no-exam policy usually has a ceiling of $250,000, but your policy can be issued in days or even hours, unlike in other insurance programs where the issuance of a policy can take weeks or months.

ROP Term Life

If you go for this time of term life insurance, you will normally have to pay more, but at the end of the term, all the premiums you paid will be returned to you. That is, if you are still alive at the end of the term.