Increasing Premium Term Life Insurance

Increasing Premium Term is temporary life insurance protection at an affordable initial premium. This type of policy is renewable each year which means you may renew the policy annually (until the expiry age which varies by state) without providing evidence of insurability, or proof of your good health. As long as you pay the premium, the policy remains in force. Like all term insurance, Increasing Premium Term provides pure insurance protection only. It does not accumulate cash value, nor is it eligible for dividends.

Premiums increase each year you renew the policy. The amount of this increase is guaranteed in the policy for the first ten years. Each year, premiums on the renewed policy will typically be higher, because they are based on your age at the start of the renewal period. You may convert all or part of an Increasing Premium Term policy into a permanent, cash value policy without furnishing evidence of insurability.

Increasing Premium Term Life Insurance Quick Hits:

• Renewable annually, which means you may renew the policy annually (until the expiry age which varies by state) without providing evidence of insurability, or proof of your good health.
• Premiums increase each year. The amount of this increase is guaranteed in the policy for the first ten years.
• Premiums on the renewed policy will typically be higher, because they are based on your age at the start of the renewal period

A Good Choice When:

• There are limited funds: in situations where life insurance is essential but dollars are scarce, IPT could serve as a stop-gap. Young people starting their careers can choose IPT, then covert to a permanent policy as their finances improve.
• There is a need for supplemental insurance. IPT is an affordable way to increase total insurance coverage. IPT can also be added as a rider to a permanent plan to boost death benefits.
• There is a need for family coverage. Optional riders such as the Children’s Insurance can be added to the policy to extend coverage to your children (see “Available Riders” below for more Information.)