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
