Six Major Term Life Insurance Classifications 

Life insurance can give you and your loved ones essential financial security and peace of mind. In the wake of tragic deaths, those left behind may face significant financial and emotional stress, and having access to necessary funds and resources can make a sizable difference in the manageability of these difficult times. With this in mind, term life insurance can prove to be an invaluable investment. However, these policies can come in several forms, meaning you should take time to understand your options to ensure suitable coverage.

What Are the Primary Term Life Insurance Classifications?

While details, limitations and capabilities of term life insurance can vary significantly and may often be customized to suit your needs, preferences and budget, most policies can be classified as one of the following major term life insurance classifications:

• Level term life insurance—This classification is the most common type of term life coverage and allows you to lock in your premiums throughout the duration of your policy. Furthermore, your insurer cannot cancel the policy unless you fall behind on payments.
• Renewable term life insurance—This type of policy guarantees that you will have the ability to renew your coverage should the initial term expire. Although you will not be required to take a new medical exam to renew your policy, your premiums will typically increase due to age and any newly acquired health issues.
• Convertible term life insurance—This form of term life insurance can guarantee that you will have the option of converting your policy into whole life insurance, which provides lifelong coverage. This can typically be done as long as you do so before your original term expires and are under the age of 65.
• Convertible-renewable term life insurance—This flexible form of life insurance combines features of renewable and convertible policies by guaranteeing you the ability to either renew your coverage for another term or transform it into whole life insurance.
• Increasing term life insurance—Under these policies, the death benefit and premiums may increase throughout the term, resulting in potentially higher payouts for beneficiaries as insureds age.
• Decreasing term life insurance—In contrast to increasing term life insurance, this type of coverage, also known as mortgage insurance, includes a lesser death benefit as the policy ages. Premiums remain constant throughout the duration of decreasing term policies, but may generally be lower due to the potentially lower payout.

We’re Here to Help

At COE Agency in Athens, Georgia, our knowledgeable team is committed to helping you and your family secure optimal life insurance. Having successfully served hundreds of local families and individuals, our staff has ample experience from which to draw and will utilize these resources to help you assess your options and select the right policy. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.