The Radical Guide to Life Insurance: Two main types of term life insurance

There are two main types of term life insurance:

Yearly renewable term life insurance. Similar to other term life insurance policies, yearly renewable term life insurance policy premiums are relatively inexpensive at the start and increase substantially as the policy-holder ages. These policies provide a death benefit -- but nothing more.

The great benefit of this policy is the ability of the policy-holder to renew without having to take a medical exam. This can be especially appealing to those who become ill during the life of their policy and are concerned both about passing a medical exam and the potential for premiums to increase substantially.

Level premium term life insurance. Level premium term life insurance premiums increase as you age until they hit a policy-specified ceiling. Though initial premiums are higher than those of the "yearly renewable policy", they can be significantly lower over time.

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