Annually renewable is a term insurance policy that the policyowner has the right to continue in force from year to year simply by paying the premium, and the premium will increase each year to reflect the increased probability of death.  The premiums can become substantially higher after age 50.

Level term insurance is a term policy that the policyowner keeps in force by paying a fixed premium for a specified period of time, such as 10, 15, or 20 years.  The initial premium will be higher for level term than for annually renewable, but level term offers the assurance that premiums will not increase.

Reentry term insurance is a term policy that requires the insured to submit periodically to a medical examination in order to qualify for lower premium rates.  For example, after 10 years of coverage, the insured will need to pass a physical exam to get the lower rates.  Otherwise, the insured must pay higher renewal premiums.  Because the insured's continued good health is required, reentry term may have a lower premium than other policies, but the risk for the insured is greater.

A universal life policy provides the policyowner with considerable flexibility as to death benefits and premium payments.  While premium payments can be varied, the initial premium must be a minimum amount, and sufficient premiums must be paid so that the cash-value fund will contain enough to cover the monthly mortality and expense charges.  In addition to premiums, the policy's cash-value fund is credited with interest as a rate that may be based on the performance of the insurer's investment portfolio or on an index.  Mortality costs (cost of term insurance) for the face amount of coverage are subtracted from the cash-value fund, and expense charges may also be deducted.  The policyowner is given the option with universal life of having a death benefit that is level or increasing.  the policyowner is often allowed to increase the death benefit, but evidence of continued insurability must be submitted.