Term insurance requires the least initial outlay, however premiums increase over time and coverage is temporary.
Typically these plans come in 10-20 year terms, and are renewable to age 75 or 85.
Premiums are typically flat for the duration of the initial term, and increase at each renewal, remaining flat during each term.
Premiums for term policies must be paid regularly, otherwise the term policy lapses.
Term policies do not include any investment options.
Term policies do not include any cash values.
Term policies don’t offer the option to shift from Single to Joint Last to Die.
Term policies do not have a cash surrender value.
Term policies do not offer any investment options to the policy owner.
Term policies offer the lowest initial premiums. This is due to the short duration of the terms. At the end of the term (10 or 20 years) renewing your term policy is often dramatically more expensive for the second and subsequent terms.