Saving You Money For Life

There are several different types of term life insurance:

ANNUALLY RENEWABLE TERM LIFE INSURANCE – Historically, term insurance premiums increased each year, as the risk of death became greater. While unpopular, this type of coverage is still available and is commonly referred to as annually renewable term (ART).

LEVEL PREMIUM TERM LIFE INSURANCE – Level premium term life insurance is coverage which has premiums that are designed to remain level for a period of 5, 10, 15, 20, 25 or even 30 years. These policies have become extremely popular because they are very inexpensive and can provide relatively long term coverage. But, be careful! Most level premium term policies contain a guarantee of level premiums, however some policies don’t provide such guarantees. Without a guarantee, the insurance company can surprise you by raising your premiums, even during the time in which you expected your premiums to remain level. Needless to say, it is important to make sure that you understand the terms of any insurance policy you are considering.

RETURN OF PREMIUM TERM INSURANCE (ROP) – Return of premium term insurance (ROP) is a relatively new type of coverage that generally combines low, term-like, premiums with a guaranteed refund of the premiums paid during the level term period, assuming the insured is still living at the end of the level term. These ROP plans are available in 15, 20, or 30-year term versions. Consumer interest in these plans has continued to grow each year, as they are often significantly less expensive than permanent types of insurance, yet, like many permanent plans, they still may offer cash surrender values if the insured doesn’t die.

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