Term Life Insurance is the lowest priced life insurance that is available to consumers. Nevertheless, buy only that amount that you need after considering your requirements with your insurance agent. Keep in mind that when you decide to buy term life insurance, your policy expires at the end of the term you choose. Unlike Whole Life Insurance, Term provides no Cash Value. This means that there are no funds building while you pay your insurance payments (premiums).

There are five main types of Term Life insurance available. The Deposit Term Insurance is a 10 year renewable policy where you will make a security deposit at the time of purchase. The insurance company will return the entire amount of the deposit, plus interest, as long as the policy is maintained for at least 10 years.

Re-Entry Term Insurance is the least expensive type of Term. You need to submit proof of good health to qualify for this insurance type as you get to select rates which are lower than the standard rates. Renewable Term Insurance is like an automatic renewal insurance policy at the end of the policy term without having to take a physical exam or provide proof that you are still insurable. You would still have regular increases in your premium amount as you grow older, but not because your health may be suffering. One common type of Renewable Term Life is called "Annual Renewable". The premium on an Annual Renewable Term policy will automatically go up each year. Other types of Renewable Premium Plans include; Five Year, Ten Year and Twenty Year Renewable Term.

Non-Convertible/Non-Renewable will expire at the end of a given time. Example, 10-Year Term. It costs more than Re-Entry Term Insurance, but is less expensive than Renewable Term. Convertible Term Insurance is known as a "conversion" privilege. This means that you may convert this policy to a policy with a higher premium, such as Endowment or Whole Life. You can do this at any time that you wish and your new premium would be based upon your age at the time of the conversion.