When is “level term” a better option than “decreasing” or “annual renewable” term?
Level term may be the best option for you while you are young. Even though it builds no cash value, it provides a high face value that would go a long way in taking care of your family. However, to make sure you have favorable options later in life, you should check out the other policies the company offers. Of course, they can change over time, but a company that offers whole life today is usually going to have some form of whole life or universal in the future. You should be aware that many companies that work hard to convince you to take a term policy don’t offer anything but term. If you have health problems later in life, you will find yourself forced to renew at the higher price, and your insurance will usually not be renewable at all once you reach age 85.
