Term life insurance is used to protect of a fault you not your Inheritors for responsible, if you should die. As the name implies you have only insurance for a specific term or period. At the end of this period, you have no more insurance and premium numbers you stop. The period may be only a year or more than thirty years. Term insurance is useful if you have debts, which have a measurable life at the end of which they disappear. Examples include college tuition for your children, and mortgage payments. Premiums may be variable on some policies. She would be low at the beginning, if the insurance company risk is low. The insured benefit since he or she has usually less available money for the insurance in younger age groups. The premium increase closer comes as the end of the term and the insured is (hopefully) better they can afford. Because you buy only - with whole life insurance insurance buy plus a saving plan - get more per premium dollar with term insurance insurance insurance. (See my article: whole life insurance - you should ever buy it?) Conclusion: the benefits are that term insurance is specifically designed for a commitment entered into, disappear, and bonuses to your ability, they make are cut.
Annual renewable term insurance is a type of term life insurance. This can appear as a series of policies a year. The premium increases risk increases every year as the insurance company as you grow older. However, buyer beware. Some insurance companies require that you maintain Insurabiltiy continue to cover. What does that mean? If you develop a terminal illness, and before you die comes up to the renewal date, the insurance company say, can you are no longer insurable and refuse your policy to renew. Now you have no insurance, and if you die nothing would get from the insurance company your heirs. Of course, some policies are "renewable guarantees" and their premiums would be higher than the guidelines without this feature.
The most common type of term life insurance is level term life where the premium is. This means that you the same numbers amount in premium annually, which is in effect the directive. This may not as beneficial as annually renewable, because the total premium for all the years to a level premium be averaged out. With annually renewable, you pay for the insurance from year to year, and while the premium increase each year the exact cost of a year insurance will pay you. (Exact justification of why that would be on average more expensive would include a discussion on the time value of money which I will here.) You can the most insurance companies your level term life policy renew expiration of the term but obviously at a higher premium.
Term life insurance has its place. If you have a debt that you want to be sure is paid, if you should die before the debt is taken into account, purchase term life insurance.
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