The two forms of term life insurance

 . Two forms of term life insurance exists- >Annual Term Life Insurance- where the premium is paid annually for a one year coverage and if the policy holder decides to extend the policy then he needs to agree to pay the increasing rate of premium every year. >Level Term Life Insurance- the premium paid in level term is fixed or remains the same for all the years in the contract term. level term insurance could be for 1, 5, 10,20 or even longer. Buying the right kind of insurance could prove to be a tedious task. After understanding the importance of an insurance you still might be confused about which one of the plans to opt for. However there are a couple of factors to keep in mind while selecting an insurance plan. Ø       individual’s premium paying capacity Ø       the contract term of the policy, which means considering your temporary needs, for e.g if you have to pay off a mortgage in the next 5 yrs you could opt for a term life insurance for 5 yrs. Last but not the least – the cost factor. Although term life insurance is one of the most affordable in the market, you would still want to save some dollars in your kitty.