Do the premiums charged for your term life insurance policy increase over time?
That depends on the type of term life insurance policy you have.
An annual term life insurance policy renews each year, so the premium will increase each year as you renew each policy for another annual term.
However, level term life insurance policies keep the same premium each year for the entire length of time you have coverage.
For instance, if you purchase a 10 year $150,000 level term policy for an annual premium of $300:
Based on the example above, you would pay the same amount ($300) each year for a period of 10 years, and you would have $150,000 of life insurance protection for that 10 year period of time.
In addition, some term life policies have increasing premiums every five years.
Make sure you understand how your premiums work, and ask if the premiums will ever increase, when they will increase, and how often, before purchasing your term life insurance policy.
That depends on the type of term life insurance policy you have.
An annual term life insurance policy renews each year, so the premium will increase each year as you renew each policy for another annual term.
However, level term life insurance policies keep the same premium each year for the entire length of time you have coverage.
For instance, if you purchase a 10 year $150,000 level term policy for an annual premium of $300:
Based on the example above, you would pay the same amount ($300) each year for a period of 10 years, and you would have $150,000 of life insurance protection for that 10 year period of time.
In addition, some term life policies have increasing premiums every five years.
Make sure you understand how your premiums work, and ask if the premiums will ever increase, when they will increase, and how often, before purchasing your term life insurance policy.
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