Term life insurance is a policy that provides coverage to the insured over a certain length of time. One key characteristic of level term life insurance is that the premiums remain level for the life of the policy (whether it be 5, 10, 15, 20, 25, or 30 years).
Yearly renewable term life insurance has a lower initial premium. However, the premium rises each year. Yearly renewable term life insurance is only cost effective for a few years because of the increasing premiums. If you are looking for term life insurance that runs more than a few years then a level term life insurance policy can cost less.
Reasons for buying term life insurance:Term life insurance cost less than permanent insurance. A potential buyer may have young children at home and he/she has to protect his/her income.
source: www.tipsanswers.com
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