What is the definition of Increasing Term Life Insurance?

An Increasing Term Life Insurance is a type of life insurance that provides the insured with increased life coverage throughout the duration of the policy.

Although the premiums are level or do not change at the time the policy is in force, the death benefit increases at a specified amount or percentage at the interval stated in the policy. The increases will continue until the policy expires or until the period stated in the policy.

The Increasing Term Life Insurance is usually bought as a rider to meet special needs and never as a stand-alone policy. This may also be used to hedge inflation, particularly if the insured has a growing family.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage