Level term insurance

Level term insurance

A life insurance policy with a fixed face value and increasing premiums.

Level Term Insurance

A term life insurance policy in which premiums remain the same throughout the term. Most level term policies have lives of 10 or 20 years, but this is not always the case. The distinguishing feature is that both the death benefit and the premium are fixed for the life of the policy. This means that premiums may be more expensive at first, but they will not increase as the policyholder becomes older or if he/she suddenly becomes ill.

Level term insurance.

With a level term life insurance policy, your annual premium remains the same for the term, which may be as long as 10 or 20 years.

The death benefit also remains the same. If the policy is guaranteed renewable, you can extend coverage for an additional term without having to qualify again, though the annual premium will increase because you're older.

Although the cost of insurance in the first few years will probably be higher for a level term than an increasing term policy, the total cost of a level term with the same benefit is usually less. As with all term policies, you don't build up a cash reserve and your coverage ends at the end of the term or at any time you stop making payments.

Mentioned in ?
References in periodicals archive ?
Four-Year Level Term Insurance Rider, which provides extra coverage equal to 125% of the initial face amount for the first four years of the policy.
The policy also provides four-year level term insurance to cover the risk of having death benefits included in the estate under certain conditions.
Provide four-year level term insurance to cover the risk of
Consequently the type of insurance you need is a seven-year level term insurance written in trust for the benefit of your daughter.
Policy Forms #147-10, #147-15, #147-20, #147-30, #147-54, Disability Premium Waiver Rider # R85-201, Level Term Insurance Rider -- Children's Term Insurance # R79-33, Accelerated Death Benefit Rider, form # R06-70).
Level term insurance rider: Gives clients the option for additional, convertible level term insurance on the person insured under the base amount of the policy.
25,000 to $250,000 of death benefit -- 10-, 15-, 20- or 30-year guaranteed level term insurance -- Issue ages 18-60 -- No blood, para-meds or APS's required
NWL Term and NWL Secure Term are level term insurance products with guaranteed premiums for 10, 15, 20 or 30 years.
Conversion comes at a price on it tends to be 10 per cent more expensive than basic level term insurance.
The National Association of Insurance Commissioners' Valuation of Life Insurance Policies Regulation of 2000--or Regulation XXX--sets statutory reserve requirements for level term insurance business.