Types of Term Life Insurance

Guaranteed Level Term Life Insurance. Guaranteed level term life insurance is the most common type of term life insurance. It is popular because of the extremely low cost and long term coverage it provides. These types of life insurance policies have premiums that are designed to remain level for a period of 5, 10, 15, 20, 25 or even 30 years.

Return of Premium Term Life Insurance. Return of premium term life insurance (ROP) is a term life insurance policy that is similar to guaranteed level term life insurance, but offers a guaranteed refund of premiums at the end of the term provided the insured is still living. ROP term life insurance is more expensive than guaranteed level term life insurance, but the premiums are designed to remain level. Return of premium term life insurance policies are available in 15, 20, or 30-year terms.

Annually Renewable Term Life Insurance. Annual renewable term life insurance (ART) is a type of life insurance policy that has increasing premiums. Premiums increase every year to reflect the probability of death in any given year based on your age and health. With most ART policies the annual premiums are guaranteed to not exceed a predetermined dollar amount; however, purchasing a guaranteed level term life insurance policy is often more economical.