What Is True Term Life Insurance? 
What is `` true term life insurance '' ? Annual increasing premium term insurance is what fits the definition of true term life insurance . Annual increasing term is a one year premium , each year a new premium is created and year after year th cost rises to reflect the true cost of insurance . With AIPT you only pay for the actual premium for that period of time . There is no extra premium applied to be held in reserve to balance the cost . What most people , even the people who blast permanent insurance do n't realize is level term is a form of permanent insurance . Just a different time frame for the product . You overpay early to underpay later . The overpayment is invested early to help with the cost later , just like permanent . 