Which type of insurance increases its death benefit over the term to a preset amount?

Increasing Term Life Insurance is designed specifically to have a death benefit that rises over time to a predetermined amount. This increase in the death benefit is intended to keep pace with inflation or to provide a greater benefit as the insured's needs change over time. This type of policy can be especially valuable for individuals who anticipate greater financial obligations in the future, such as covering a growing family or paying off a larger mortgage.

Unlike Level Term Life Insurance, which maintains a consistent death benefit throughout the term of the policy, or Decreasing Term Life Insurance, where the death benefit declines over the policy's term, Increasing Term Life Insurance is structured to address the potential increase in expenses or needs. Whole Life Insurance, while providing a death benefit and cash value accumulation, operates on a different principle of permanent coverage rather than a term structure. The unique characteristic of Increasing Term Life Insurance is its progressive benefit structure, making it particularly useful for those concerned about future financial pressures.