What Does A 20 Year Term Life Insurance Policy Mean? 
If you have a 20-year level term policy and the premium is $ 400 per year for example , at the 21st year you COULD keep it but the premium would be around $ 3,000 per year . And if you keep it a year after that it would be $ 3,500 per year . It would keep going way up . The idea behind level term insurance is to buy the length of time that you need to be insured . For most people that is when they reach retirement age and the kids are on their own . Then your insurance runs out and you do n't need a big policy anymore . The most common misconception about level term insurance is that many people think they will have a paid up policy in 20-years . That is completely wrong . 