Here’s a clear, easy-to-use breakdown of the main types of Term Life Insurance available today. These categories come directly from reputable insurance sources and reflect the options most people encounter when shopping for protection.
Types of Term Life Insurance
Below are the core types, with simple explanations of how each one works.
1. Level Term Life Insurance
- The most common type.
- Premiums stay the same for the entire term (10, 15, 20, 25, or 30 years).
- Death benefit stays level.
- Ideal for families who want predictable costs.
2. Convertible Term Life Insurance
- Allows you to convert your term policy into a permanent policy (like Whole Life or IUL) without new medical underwriting.
- Powerful for people who want low-cost coverage now but may want long-term, tax-advantaged coverage later.
3. Return of Premium (ROP) Term Life Insurance
- If you outlive the term, the insurer refunds all premiums you paid.
- Costs more than standard term, but some people like the “forced savings” aspect.
4. Group Term Life Insurance
- Offered through employers or associations.
- Usually inexpensive but not portable if you leave the job.
- Coverage amounts are often limited.
Quick Comparison Table
| Type | Premiums | Death Benefit | Best For |
|---|---|---|---|
| Level Term | Fixed | Fixed | Families wanting stable, predictable coverage |
| Convertible Term | Fixed | Fixed | People who may want permanent insurance later |
| Return of Premium | Higher | Fixed | Those who want money back if they outlive the term |
| Group Term | Low (employer-subsidized) | Fixed | Employees wanting basic, low-cost coverage |
ETHOS can provide simple, fast and efficient quotes and instant approvals.
| State (You Live In) | Link |
| California | My Agent site link: https://agents.ethoslife.com/invite/6de4d Licensed In: [CA] |
| Other (State) | Need More Information (Contact FBW) |
