It offers you a lot of options when you buy a term life insurance policy for your financial security.
There are many types of term life insurance. Here are some of the most common types of term life insurance policies that you may come across.
Level term life insurance is very common. With this type of policy, the premium and death benefit remain the same throughout the life of the policy, leaving no changes.
Generally, level term policies are effective for five to 30 years. The policyholder pays only one premium for the whole time.
Variable term life insurance can be converted to whole life insurance if the policyholder wishes, so those who want to maintain insurance coverage for a longer period have the option to do so.
Variable term premiums can be much more expensive if a term life policy is converted into a whole life policy.
Extending term life insurance gives the policyholder the option to increase the death benefit over time. Switching to higher coverage comes at an additional cost.
But policyholders don't have to worry that a health condition will prevent buying more coverage.