It All Depends On The Type Of Term Life Insurance

It all depends on the type of term life insurance you have. With renewable term, you are guaranteed the right to take out another term policy without the formality of a new application or medical examination.

With standard term, your insurance coverage ceases, and you have to apply again, including taking a medical examination. With convertible term, you reserve the right to convert your term policy to another type of policy, such as whole life or universal life — or in some cases, another term policy—at any time during the term of your policy. You should, however, expect an increase in your premiums with your new policy.

If a term life insurance policy offers level term, it is usually one of two types. The first type is guaranteed premium level term, which the premiums are guaranteed to remain level during the entire term of the policy. The second type is non-guaranteed premium level term policy, which the premiums are only guaranteed for a portion of the term period. Most of the time, the partial guarantee runs 5 or 10 years. In this kind of policy the insurance company reserves the right to raise premiums under certain conditions.

Age, height, weight, past and present medical conditions, family medical condition history and lifestyle can all affect the determination of your premium. The choices you make regarding coverage, such as length of term and guaranteed premiums, will also affect the amount you will pay.