What are the different types of Term Life insurance?

  1. Annual Renewable Term Life Insurance

An expensive from of term life insurance. Not suitable for long term coverage. Policyholders are required to pay higher rates with each annual renewal. Medical exam is compulsory.

  1. Decreasing Term Life Insurance

Type of annual renewable term life insurance whose coverage keeps reducing annually. Ideal for those seeking short term coverage. Medical examination is compulsory.

  1. Group Term Life Insurance

A form of insurance for employees which are sometimes for free provided by the employer. Medical examinations are not necessary. Insurance ends when the employees quit. Many employees have an additional coverage due to inadequate coverage by the group life insurance.

  1. Level Term Life Insurance

Provides coverage for an allotted period, generally 5- 30 years as desired by the policyholder. Policy is renewable with the expiration of the initial period. Policyholders are required to take a medical examination.

  1. Return of Premium Life Insurance

As the name suggests ROP policy holders can redeem their premiums paid for the insurance if they do not die during the stated period. This is an expensive for of insurance. Not suitable for those with ubiquitous medical conditions such as diabetes, cholesterol, high or low blood pressure and smokers. Medical examination is required.