What is the advantage of level vs. yearly renewable term life insurance?
The difference between level term life insurance and yearly renewable term life insurance is that the premium remains level over a specified period of time with level term and yearly renewable term begins with a lower initial premium, but the premium increases each year. If you only need coverage for a few years, yearly renewable term life may be the way to go. However, if you need coverage for more than a few years a level term policy would usually be the most cost effective. When choosing the length of your term make sure to carefully consider your needs, after the level premium period expires, most insurance companies require a new medical exam in order to qualify for renewal. If for some reason you do not qualify, your premium will increase after the level premium period expires.
