Many people buy term life insurance protection. These policies do not accumulate cash value, and typically provide coverage for a specific time - 5, 10, 20 or more years. A level term policy has a constant premium throughout the policy period. Renewing a level term policy, however, costs significantly more because the covered individual is 5, 10, or 20 years older. While less common, renewable term policies are another option. Renewable term policy premiums increase each year based on age.

Universal and variable life insurance products are also widely available. These permanent life insurance policies provide payment flexibility and build cash value. Adjustable payments are appealing but in time may result in higher premiums to cover reduced cash value. In addition, universal and variable life premiums may increase if investment performance or interest rates do not build cash value as expected.

Whole life is yet another permanent life product that accumulates cash value. The cost for whole life is fixed, based on your age at policy issue date. Whole life premiums should not increase if you pay on time and avoid borrowing against cash value.