Term insurance

Increasing term

Level premium, death benefit increases each year. The amount of increases in the death benefit is expressed as a specific amount or a percentage of the original amount

Decreasing term

Level premium, decreasing death benefit each year over the duration of the policy term

Level term insurance

Most common protection purchased, where the death benefit remains the same throughout life of policy

Basic types of term contracts

1. Level 2. Increasing 3. Decreasing Premium is always leveled throughout life of policy. Only death benefits fluctuates

Special Features of term insurance

1. Renewable 2. Convertible

Return of premium (ROP)

An increasing term policy that pays an additional death benefit to the beneficiary to the beneficiary that's equal to the amount of premiums paid. If policy expires and insured remains alive and healthy the insurance guarantees a return of policy

Level premium term

Death benefit and premiums remain the same level

Term insurance

Provides coverage for a specified period offering the greatest amount of coverage for the lowest premium Also known as pure life insurance

Convertible

Provides the policyowner the right to convert policy to a permanent insurance policy without evidence of insurability

Annually renewable term

Purest form of term insurance. Death benefit remains level and policy is renewable each year without proof of insurability. Premiums does increase annually according to the attained age

Renewable

Allows policyowner the right to renew coverage at the expiration date without evidence of insurability