Many people who buy cash-value insurance view it as an investment, a tax shelter or a way to pay off estate taxes without burdening their heirs. During any sales presentation, make sure you know which one is being talked about. Generally, term insurance is a more cost effective choice for young families and for healthy people in their 20s, 30s and 40s. Many people who buy cash-value insurance view it as an investment, a tax shelter or a way to pay off estate taxes without burdening their heirs. At any given company, the more your premium is, the more your death benefit will be.
Premiums vary among companies, so shop around.
Level-term premiums are the same throughout the life of the policy, but increase if you choose to renew. Annual renewable premiums increase each year as you age. Level premiums are usually higher than renewable premiums in the first few years of the policy, but lower in later years. Renew the policy. Your premiums always increase when you renew a term policy.