If a term life insurance is what you are looking to get, then you should definitely know about its different types. We have listed the most common types of term life insurance, along with their facts and benefits, to help you make the right choice.
Guaranteed level term life insurance
This type of term life insurance is the most common and basic type. It has premiums that could last from 5–30 years. Also, these premiums do not increase throughout the duration of this life insurance policy. Read more.
Convertible term life insurance
If you are desirous of having a whole life insurance policy in the future, you should consider the convertible term life insurance. With this type of life insurance, you can easily convert into whole life insurance at the end of your policy without paying higher premiums. Also, you will get to keep your coverage for the rest of your life irrespective of your health or age. Read more.
Annual renewable term life insurance
This type of life insurance allows you to renew your policy for an agreed period of time. Even though your premium will rise with each renewal, the life insurance policy is guaranteed regardless of any serious medical conditions you might have. Read more.
Decreasing term life insurance
If you currently have massive financial obligations that may decrease in the future, then this is the life insurance for you. It pays a lower claim as your life insurance policy becomes mature over time. Also, its death benefits decline throughout the period of the policy while the premium remains constant. Read more.
Return of premium term life insurance
This type of life insurance policy is cheap and has similarities with a whole life insurance policy. It has a special clause that returns your life insurance premiums to you when it ends. However, this clause is based on the assumption that you will still be alive by then. It is mostly available in 10-30 year terms. Read more.
Increasing term life insurance
This type of term life insurance plan is perfect for those on a strict budget who cannot afford a standard term life insurance. You can start with a small policy and increase it once your finances are in a better place. With this term life insurance, you are assured of an increase in death benefit as it matures.