One of the most common and cost effective life insurance coverage to purchase is term insurance. so what does that mean? Term is designed to cover a specific length of time, usually 10, 20 or 30 years (T10,T20,T30) but can be available in other lengths as well. This kind of coverage protects at a level cost for the time period selected, for example ten years in the case of Term 10.
The shorter term is the cheapest for that length of time but will go up substantially at renewal time. If you have a mortgage that needs to be covered for 20 years, it is less expensive overall to purchase a term 20. It is more expensive in the first ten years but much cheaper in the second ten year period.
Insurance companies have the benefit of putting large numbers of people in the same pool and price their product accordingly. If you are healthier than the average person in the pool it is wise to apply again prior to the end of the term. That way you are likely to get a better price for the next term you require. Never cancel your insurance prior to this as if they find there are some issues, you may pay a great deal more for coverage or be denied coverage altogether
Term is great to cover a short term need such as mortgage payments, lost wages until children are on their own and business obligations. It is pure insurance to cover a catastrophe. If you require the ability to grow investments tax free , look at Permenent coverage.