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Definitions for Term Periods

YRT (Yearly renewable term): This policy renews every year and although the face amount remains the same, the premium increases annually. This is initially the least expensive form of term but expensive in later years.

10 Year Term:  The face amount stays level for 10 years. The premium remains stable for 10 years. After 10 years, you can renew with evidence of insurability for another 10 Year term at a higher rate. This is the most popular form of Term.

15Year Term: The face amount stays level for 15 years. The premium remains stable for 15 years. After 15 years, you can renew with evidence of insurability for another Term period at a higher rate.

20Year Term: The face amount stays level for 20 years. The premium remains stable for 20 years. After 20 years, you can renew with evidence of insurability for another Term Period at a higher rate. This Term Plan is very popular amongst families with young children.

25Year Term: The face amount stays level for 25 years. The premium remains stable for 25 years. After 25 years, you can renew with evidence of insurability for another Term Period at a higher rate.

30Year Term: The face amount stays level for 30 years. The premium remains stable for 30 years. After 30 years, you can renew with evidence of insurability for another Term Period at a higher rate. This plan is popular for young people that want to lock in their premium for a long period of time.

ROP: Return of Premium: This plan returns a portion of the premiums paid back to the insured if they outlive the term period. This plan is usually available for 20 or 30 year term. The premium is higher than a standard guaranteed renewable term for 20 or 30 years. This plan is popular with people that want to see a “return” on their policy. This is a return of premiums, and does not include interest.