Find out about the top ten ways to prepare for your medical exam. HOME Go back to the AccuQuote home page. Each year, a premium is paid to cover the risk of death during that year.
Term insurance has no cash value.
The only way to collect anything is to die during the term. Historically, term insurance premiums increased each year, as the risk of death became greater. Many insurance companies now also offer level premium term. These policies have become extremely popular because they are very inexpensive and can provide relatively long term coverage. Most level premium term policies contain a guarantee of level premiums, however some policies don't provide such guarantees.