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By Mike Heuer


When it comes to term life insurance, your coverage options are widely varied. But there are about six basic types of term life insurance coverage available in most states. To help you better select which one is best for you, we’ve compiled a shore list with explanations.

Term Life Insurance – Pays the policy face amount only if the insured dies during the term for which he or she is insured. Term life insurance usually lasts for terms of at least 5 years and up to 20 years. Sometimes the term can be 30 years, but whole life insurance often is preferred over a 30-year term life insurance plan.

Level Term Life – Provides the same death benefit amount throughout the term life policy. Level term life is the most basic form of term life insurance coverage and sometimes provided by employers, professional organizations and other entities as a benefit.

Decreasing Term Life – A decreasing term life insurance policy is a popular form of credit protection in which the insured amount decreases over the term to reflect the decreased risk over time, but the premium amount remains the same. As the loan is paid off over time, the insured amount is reduced accordingly. Decreasing term life insurance often is used for credit and mortgage protection.

Increasing Term Life – Only sold as an addition to a whole life policy and increases the death benefit amount over time. Increasing term life insurance policies typically are used to protect increased assets acquired over time.

Renewable Term Life – Term life policy in which the policyowner can renew coverage without proof of continued insurability. Premiums typically increase each time a policy is renewed. Almost all group life insurance policies are renewable term life insurance policies.

Re-Entry Term Life – A form of renewable term life insurance in which premiums are kept lower if the insured agrees to periodically prove insurability through health examinations and other means. Re-entry term life insurance the only form of term life insurance that requires a health exam.

If you see a term life insurance type that sounds good for you and your family, please feel free to use our convenient and secure term life insurance quote tool to get free quotes from reputable companies approved by your state insurance commissioner.