I noticed that Centrian Life offers two different term life insurance products: Guaranteed Level Premium Term Life Insurance and Yearly Renewable Term Life Insurance. Why should I choose one over the other?

One advantage that guaranteed level premium term life insurance has over yearly renewable term life insurance is that your premiums remain level (fixed for a period of time). The price you pay will never go up or down during this period. Premium is based on your age at the time you purchase the policy and it does not change during the guaranteed level premium period. It functions exactly as we described above, and can cover you until you reach 85 years of age. Keep in mind after the guaranteed level premium period that you choose ends, the premium will go up until age 85 when the policy ends.

With yearly renewable term life insurance your policy renews every year. Each year, the premium you pay will be calculated based on your current age. It is very inexpensive in the early years and then increases as you get older. The plan will automatically renew every year until you reach the age of 90 and you will not be required to have a paramedic exam or provide proof of insurability each year. The term life insurance premium may increase annually. If you need coverage from age 75 to 90, you are able to continue the plan with a fixed premium rate, but your coverage amount will decrease annually.

At any time up until you reach the age of 65, you can convert your yearly renewable term life insurance policy to a whole life insurance policy, without having a paramedic exam or providing additional proof of insurability. Your coverage amount will be for a face value amount of not more than the face value amount of your yearly renewable term life insurance policy on the date that you converted the policy.

If you need term life insurance to cover you for an extended period of time (rather than just a few years), it may be financially beneficial to choose a guaranteed level premium term life insurance policy over a yearly renewable term life insurance policy. A licensed representative from Centrian Life can discuss the different options with you, in order to help you decide the type of term life insurance that is appropriate for you.

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If I choose guaranteed level premium term life insurance, what length of time (term) should I choose?

Centrian Life offers guaranteed level premium term life insurance policies for 10, 15, 20, 25 or 30 year periods. As a general rule, if you are younger, you will probably want to choose a longer term, while if you are closer to retirement, a shorter term may be more appropriate.

The main goal when choosing a life insurance policy period is to protect your loved ones if an unexpected death occurs. People also buy life insurance to cover final expenses, such as burial expenses and estate taxes. A licensed representative from Centrian Life can discuss the different options with you, to help you decide the amount of coverage and term length that is right for you.

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At what age should I buy a term life insurance policy?

The earlier, the better. It’s a fact that life insurance gets more expensive the older you get. This is simply because as you age, the more likely it is that you will develop a medical condition that decreases your life expectancy. And unfortunately, the older you get, the more likely it is that you will die. That’s why older folks pay more when they buy life insurance!

Because guaranteed level premium term life insurance rates remain fixed for the entire period that you selected, young people can often get a lot of coverage for as long as 20 or 30 years at a very affordable rate. This low rate does not change during the entire period you selected, even if your health declines.

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Will my Centrian Life term life insurance premium increase during the term length of my policy?

If you purchase guaranteed level premium term life insurance, your premium rate will not change during the period that you select. It will only go up at the end of the period that you initially selected. This increase may be very significant, so you may want to consider the longest initial period that best suits your budget.

If you purchased yearly renewable term, the premium will increase annually. Each year, the premium you pay will be calculated based on your current age. It is very inexpensive in the early years and then increases as you get older. The plan will automatically renew every year until you reach the age of 90 and you will not be required to have a paramedic exam or provide proof of insurability each year. The term life insurance premium may increase annually.

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I have a Centrian Life term life insurance policy. Can I exchange it for a whole life insurance policy?

Yes! With our Conversion Feature, you can exchange (or "convert") your Centrian Life term life insurance for a whole life insurance policy without having a paramedic exam or even answering a health questionnaire during the conversion period that is allowed in the policy.

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