1. 145 POINTS
    Cecil Sabu
    Bank Representative, State Farm insurance,
    It means that based on your current age and qualifications, you receive a fixed premium for the coverage amount requested for a 30-year period.

    This premium won't change for the remainder of the term once the policy is issued and bound as long as you make payments on-time and avoid lapsing coverage.

    At the end of the 30 years, the policy is terminated. Some policies allow you to convert or continue past the 30 year period at a substantially higher premium, otherwise you would be left to acquire a new policy at your new age's underwriting standards and premium rates.
    Answered on April 13, 2013
  2. 11773 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    The 30 years refers to the period of time where the premium is level in cost. It could be 10,15 20 or 25 level years as well. Most policies these days are written to last past their level premium window. Most will continue in force to age 90 or 95. That said, the premium jump would be significant and would increase every year there after.
    Answered on April 13, 2013
  3. 12689 POINTS
    Ted RatliffPRO
    Owner, SFS Associates,
    Thirty Year Term means that the policy will be in force for 30 years, at which time the policy may be renewed if that option is available or unless it converted to a permanent policy (again if that option is available), it will terminate. There are a couple different types of term policies. Level Term means the face amount will stay level for the term of the policy. This is most common. There is also decreasing term, meaning the face amount decreases over the term of the policy. This is usually used to cover a mortgage for example. There is also increasing term where the death benefit increases over the term of the policy. This is far less common. There are some term policies that allow for premium increases during the term of the policy so be careful and don't just assume the premium will stay level. I have seen some contracts that allow companies to increase premiums based on there mortality experience.
    Answered on April 13, 2013
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