What are the benefits of Level Term vs. Yearly Renewable Term?
Level term insurance includes low premiums and steady coverage over the term of the policy. In other words, your premiums do not go up and your coverage does not go down as long as your premiums are current. “Annual” or “Yearly Renewable Term” offers the lowest initial cost life insurance available. Premiums for this type of life policy will start out very low; however, the premium will increase each year. In general, Yearly Renewable Term policies are most efficient during the first 3 to 4 years. If you plan to keep your policy for longer than 3 to 4 years, you should consider Level Term.
