The premiums are guaranteed to be the same for a given period of 10, 15, 20 or 30 years and is based on the cost of each year’s annual renewable term rates, therefore the longer the term, the higher the premium.

Most Level Term Life Insurance programs include a renewal option which allows the insured person to renew for a maximum guaranteed rate if the period needs to be extended. This clause is invoked only if the health of the insured deteriorates during the term.