Which is better, Term or Permanent Life Insurance? And if I opt for Term, should I choose Level Term or Yearly Renewable Term?

AAA Life Insurance Company offers a variety of quality insurance and retirement savings options designed to fit every need and budget. All of our individual life insurance and annuity products are available to AAA Members and non-Members alike.

The type of life insurance best for you depends on your particular needs. Term life insurance is appropriate and more cost-effective for temporary needs lasting up to 30 years. Permanent life insurance is better for permanent needs longer than 30 years. Given your particular situation, you may require a combination of term and permanent life insurance.

Level vs. Yearly Renewable Term
If you decide to go with Term life insurance, you will need to choose between Level Term and Yearly Renewable Term. The advantage of level term life insurance is that the premiums remain level over a guaranteed number of years. Yearly renewable term life insurance has a lower first year premium but the premium increases each year. Yearly renewable term life insurance is only cost-effective in the first few years, after which it becomes more expensive because the premiums increase each year. You should select a guaranteed term period to match the duration of your term life insurance need. If your needs vary in duration, one cost-effective solution is to purchase multiple policies each with a different term period.

Learn more and get a no-obligation quote, or call one of our AAA Insurance representatives at (888) 689-2722.