Term policies provide life insurance for a specified period of time.  They provide money in the event of death, but offer no cash value.  Term policies are to be considered if you have a limited amount to spend.  Keep in mind, the cost of term insurance increases as you get older.

Today’s Term insurance is offered as a guaranteed level premium or a step up non-guaranteed premium.  The level amount means you pay a set amount for a specified period.  The period could be 5, 10, 15, 20 or even 30 years. 

Example: 20 year term policy for $200,000, annual premium $225.00.  Premium is guaranteed not to change for the life of the contract, 20 years.  After the 20 years, you can continue the insurance, but it will increase in premium yearly. 

The step up or non-guaranteed term policy premiums are lower at first, but then increase substantially every year.

There are pros and cons to the 2 different term insurance contracts mentioned above. 

As always, if you have any questions or concerns, contact your insurance agent or a www.starkquote.com insurance agent.