“In Plain English,” level term life is a term insurance policy that guarantees the premiums will stay the same for a specific term length without increasing or decreasing, as long as the policy remains in force.
On average, these terms are 5, 10, 15, 20 and 30 years.
The most popular and desired product is 20 Year Level Term Insurance.
This means that no matter what your premiums are when you get approved for your policy, it will stay the same until the end of the term.
It also doesn't matter if your policy requires an exam or if you are looking at life insurance no medical exam quotes, both of these policies can be level term.
If we keep in mind that our rates never change for the life of the policy, then it starts to make sense why the longer level term you choose, the higher the premiums.
All things being the same, a 30 Year level term policy will always cost more than a 10 year level term policy.
A majority of level life insurance plans, also known as traditional life insurance, policies include the option to renew your policy.
At this renewal your rates are subject to change and usually people will only renew the policy if they can’t medically be approved for a new policy.
Unlike whole life insurance, which is considered a type of permanent life insurance, level term policies will eventually come to an end at a specific amount of time based on the policy you purchase.
These policies have also been called fixed rate term life insurance since your rates are considered to be “Fixed” and will not change for the entirety of the policy.
Some additional things to note about level premium term life insurance policies are:
Remember, your premiums will not fluctuate, they won’t go up or down no matter what happens to your health while you own the coverage.
This is always the best option for anyone who is on a fixed budget and can’t have their monthly expenses start to suddenly increase.
When you are trying to choose the right life insurance policy it is essential to know all of the details.
The main reason to purchase a level term life policy is because they are the most affordable and they allow you to save money over the life of your policy.
You will know exactly how long the coverage you have will last, and you will also know what you exact cost will be month to month.
There are other product types that aren’t level like a graded death benefit policy or and mortgage protection insurance policy.
The above policies both have limitations when it comes to being level.
A Graded death benefit policy will have a level premium, but not a level death benefit for the first 2 to 3 years.
During the first few years, your coverage amount (death benefit) is only the premiums you have paid into the policy + a few percentage points.
This means you must live for the specified period before your benefits will “Grade Up” to the full benefit amount.
Mortgage protection insurance, which is also called decreasing term life insurance policies work in the exact opposite way as a level term.
Therefore, the longer you have a decreasing term policy, the lower the coverage will be and the lower the premiums will go.
Eventually you won’t have any coverage at all.
Decreasing term policies are sort of dated and most companies are starting to not offer them anymore.
Based on all of the options, your best bet is going to be a level term life policy.
The primary differences between a level term policy and a decreasing term life insurance policy is that the death benefit of a level term policy will never change. Death benefits of a decreasing term policy will decrease over the life of the policy down to a specific amount. These policies are usually used for mortgage protection insurance.
The way a term life insurance policy works is that you are given a set amount of coverage, for a specific monthly premium, over a set period of time.
Term life insurance itself does Not decrease in value; however, there are some policies that have a decreasing feature attached to them, always ask if your policy is level or not when dealing with life insurance.
An annual renewable term life insurance policy is a life insurance policy that will renew once per year with a new rate. This product is also known as short term life insurance.
The fastest way to get level term life insurance quotes is to use our quote tool on this website. After completing a very short form, you will be forwarded over to our instant life insurance quote engine, where you can compare inexpensive rates between multiple carriers. If you like one, you may begin the application process instantly online.
The other option is to reach out to an agent or search other quoting sites for a level insurance policy. However, please be advised that getting quotes on multiple sites can get you called over 100 times without you actually seeing an online quote. Here. You can do everything yourself with or without any live agent support.
Choosing a level term insurance policy will help keep your family covered, decrease costs over time and help you avoid random expenses.
Any financial analyst would recommend that you get life insurance if you have loved ones or family that depends on your income. We believe that you will be pleasantly surprised just how INEXPENSIVE (cheap) a level term life insurance policy for you will be.