Among the more common types of term life insurance plans are level term, return of premium, decreasing term and no exam term life insurance.
Level term life insurance is called level term because the amount of life insurance coverage provided stays the same each year throughout the term of your policy. So, if you have a 20 year level term policy, your annual premium will be the same each year and the amount of life insurance will remain the same each year for 20 years.
If you die during the term, your beneficiary receives a death benefit from your life insurance policy. If you outlive the term, there is no payout.
However, with return of premium term life insurance, if you do not die during the term, you receive back most of the premiums you paid for your policy throughout the duration of your term life plan. The insurance company keeps some of the premiums, but you get back most of them.
But, you pay a lot more in premiums for a return of premium term life policy than you would for a level term life insurance plan.