What Is The Difference Between Level And Decreasing Term Life Insurance?

A ten-year "level" term policy for $100,000 insures you for $100,000 during the entire ten years. On the other hand, a ten-year "decreasing" term policy for $10,000 insures you for $100,000 only in the first year. Each succeeding year the insurance shrinks a little until it disappears at the end of the tenth year. Decreasing term costs less than level term because the company's risk decreases.
A "convertible term" contract guarantees a person the right to exchange it for permanent whole life insurance regardless of his health. Of course, he must pay the difference in cost of permanent insurance. Generally, any term policy or term rider is convertible on this basis, but one must exercise the privilege on or before the time specified in the policy. The conversion privilege is very important to the owner of term insurance who finds himself uninsurable. One can check a term policy or rider to know the time limit.