ON THE LEVEL – There are different ways for insurance companies to structure the way you pay your policy premiums. The most basic is known as level term insurance. It’s easy: You pay the same premium amount each year the policy is in effect, and you know exactly what the insurance will cost for the term. In contrast, with an annually renew- able term policy, the premium in the first few years is typically lower than for a level term policy with the same cover- age. But you pay a higher premium each year you renew. Over 10 or 20 years,
the actual cost of the annually renewable term will be higher—often by several hundred dollars. Since the rate of increase from
one year to the next varies, it’s hard to know exactly what the difference in cost will be. But it is something your agent may be able to tell you when you’re considering your alternatives. FEATURES OF TERM POLICIES – Your term policy may also be renewable or convertible, or both. A renewable policy guarantees you can renew your coverage each time
the term of your existing policy ends without having to demonstrate you
are in good health. That’s especially important if   Read more…