All coverage increases usually require that you submit evidence of insurability to your insurer. These provisions appear in a term insurance policy. A convertible policy may be exchanged for another insurance plan at the policyowner's option, without evidence of insurability. Policyowners can only convert term policies to cash value policies. When both provisions appear in a policy, they continue until specified ages and then stop.
Premium rates increase at each renewal, based on the insured's current age.
It is the form of insurance with the lowest premium rates. However, while term insurance offers the most insurance per premium dollar, each time it is renewed, the premiums will be higher and increase rapidly over the years. Also, term insurance will not continue for the insured's entire lifetime. In the long-run, Whole Life, Universal Life, or Extra Value Life can be less expensive, and provide cash value as well. Return to Life Insurance frequently asked questions .