Term life insurance usually has a guaranteed premium for the number of years in the term. Sometimes the premium is guaranteed for part of the term, then can go up for the remainder of the term. Please ask about the conditions of the policy to know for sure whether your premium is guaranteed not to go up for the entire term.
The face amount is usually guaranteed not to go down for the entire term. Again, inquire about the policy so that you know if your premium and face amount are guaranteed to stay level for the entire term.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There are guarantees in a term life insurance policy. Normally the premium is guaranteed both for the term specified and future renewals if the owner decides to exercise that option. Often there is a guarantee of insurability that allows a policyholder to convert the policy to a permanent form of life insurance. The death benefit is guaranteed to remain the same as long as premiums are paid on time. There can be other guarantees such as waiver of premium.
Term life insurance can have a couple of different guarantees. The first guarantee is the premiums are guaranteed level for the term purchased. For example, a 20 year term life insurance policy has guaranteed level premiums for 20 years regardless of change in health, location or occupation. The second type of guarantee is the renewability of the term policy. You may purchase the above mentioned 20 year term policy with level premiums for 20 years, but the policy may be guaranteed until age 85, of course for a much higher premium.
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The face amount is usually guaranteed not to go down for the entire term. Again, inquire about the policy so that you know if your premium and face amount are guaranteed to stay level for the entire term.