Level term
Term Policies: Level Term
Description Premiums Cash Value Advantages Disadvantages Uses
Pure protection for term of years (3, 5, 10, 20 years, etc.) Level throughout term; Policy may have guaranteed insurability for protection beyond end of term None Low cost, level premium for term; Savings over cash value policy may be invested in a "side fund" May lose coverage at end of term if not guaranteed renewable; No forced savings element Large need for medium to long term; Individuals with discipline to invest savings over cash value in a "side fund"