The level term designation means the cost remains constant for the period of time designated. Many level term policies premiums are guaranteed for the specified period of time. Many can be renewed after the specified period of time with proof of continued good health or the cost to continue coverage can be very high. The renewal cost won t be known in advance because companies change them at their discretion. Many policies can be converted, without further proof of good health, to permanent policies the company so designates.
ART is appropriate when the coverage is only needed for less than five years.
For example, a creditor may require insurance protection on a credit line to a small business for a short period of time. ART would also be the better choice if the insured intends to convert to permanent coverage within five years when his cash flow improves. The primary purpose for life insurance is to provide protection to those financially dependent on you. Let s consider Matt Green, a recently certified internist taking his first post-training job. Matt s wife doesn t work outside the home, and they have two young children.