Life Insurance Learning Center - Term Life Insurance Types
Level Term Life Insurance, Part 1
Any time the word term is used in conjunction with life insurance, it means that the life insurance policy ends at the end of the term date without any cash value. Level term insurance means that the death benefit does not change during the life insurance coverage.
One-Year Renewable Term Life Insurance is a form of Level Term Life Insurance. The death benefit stays the same, but the cash value expires once the duration of the policy ends. Then, the policy owner has the option of renewing the policy if he/she desires, without evidence of insurability. Although, higher premiums will result.
The Five-Year Renewable Term Life Insurance is another example of this form of insurance. It is exactly the same thing. The death benefit stays the same for the five years. After the duration of the policy is up, the policy owner has the option of renewing the policy without providing evidence of insurability, however higher premiums entail.
Many other term life insurance policies cannot be renewed after the duration is over. Therefore, the policy owner needs to apply for a new policy, and the insured needs to provide evidence of insurability.
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