For children and grandchildren ages 18 - 23, Level Term I is a very low-cost way to get them started with life insurance. Level Term I is a great low-cost term life insurance policy designed to remain constant in premium and coverage amount until age 50 (40 for nicotine users). Premiums begin at $2.95 per month for a $50,000 policy and go up to $35 per month for an $800,000 policy. Level Term I also includes an option to convert the policy before age 48 (38 for nicotine users) to a Five Year Renewable Term policy with no medical underwriting. The policy can also be converted to Value-Added Whole Life (permanent insurance) at any time without medical underwriting. New premiums would be established at the time of conversion. At age 50 (40 for nicotine users), the Level Term I premium remains constant but the coverage amount reduces to 27 percent of the original face amount. At age 55 (45 for nicotine users), the coverage reduces to 20 percent of the original face amount and at age 60 (50 for nicotine users), the coverage terminates. See the chart here for a sample: http://www.aafmaa.com/lifeinsurance/getaquote/default.aspx.
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