Whats the difference between annual renewable term life insurance and level premium term life?
Term life insurance is relatively inexpensive insurance you purchase for a certain period of time, such as 10 or 20 years. If you die within that time period, a death benefit is paid to your beneficiary. If you outlive the term, the insurer keeps all of your premiums and no death benefits are paid unless the policy has been renewed. There are two basic types of term policies to choose from. Annual renewable term is coverage that doesn’t require you to take a medical exam each year to renew it. Each year when you renew, your premiums will usually increase somewhat. A level premium policy lasts for a fixed number of years (commonly, 10 or 20 years) and allows you to lock in a premium for that period. After that 10- to 20-year term is up, you usually have to pass a medical exam in order to renew at attractive rates; otherwise, your premium will increase dramatically. Although the annual renewable policy will cost you less today, in the long run the 10- or 20-year level premium policy may
