Can a $100,000 ten-year level term policy cost less than a $25,000 or $50,000 five-year level term policy?
A. There are more term policies available at $100,000 than $25,000 or $50,000, because many life insurance companies have minimum issues of $100,000 of death benefit. This means more competition, which often translates into lower premiums on $100,000 term policies than $25,000 or $50,000 term policies. Also, life insurance companies recognize a trend in consumer demand towards longer duration level term policies. To remain competitive, most companies have continued to lower the rates on longer duration level term products, often ignoring annual renewable and five-year level term products.
