How Do Term Life Insurance Premiums Work?

Do premiums for term life insurance go up or stay the same?

With a term life policy your premiums will either remain the same or increase incrementally, either every 5 or 10 years, or each year, depending on the type of term life insurance policy you buy.

For example, an annually renewable term life plan will have a level premium for one year, and if you choose to renew your policy for another year, the premium increases based on your age at renewal.

There are also term policies that have level premiums for 5 or 10 years, then the premiums increases.

There are also level term life insurance policies with level premiums for the term you choose - either 5, 10, 15, 20, 25 or 30 years.

That's why it's so important to know how long you need life insurance and select a "term" that matches your need. Also, remember that term life may offer renewability so you can renew your coverage for another term when the original policy ends, but your renewal premium will increase, based on your age at the time of your renewal.

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