Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Frequently Asked Questions

"What Types Of Term Policies Exist?"


Essentially, there are three types, or categories, of term life insurance, each with a its own relationship between premium and death benefit. An explanation of each type and the premium/death benefit relationships follow:


Level Term: The premium and death benefit remain the same for the entire length of the term.


Annual Renewable Term: The death benefit remains the same throughout the term, but each year, the premium will increase. Initially, you can expect to pay a premium that is lower than a level term premium, but over time it will become more expensive.


Decreasing Term: The premium remains the same throughout the term, but each year the death benefit decreases until it becomes zero, at which time the policy ends.