Level-Premium Insurance

Level-Premium Insurance

A type of term life insurance for which the premiums remain the same throughout the duration of the contract. Also known as "level-term insurance".

Notes:

Remember, this policy is a type of term life insurance, which provides coverage only for a specified duration and has only a death benefit, no savings element. Therefore, when considering level-premium insurance, you should carefully consider the length of coverage best suited to your needs. For example, if the primary purpose of the death benefit is to provide income to support very young children and/or fund college expenses, a 20-year level premium might be appropriate. However, if these children are already in their early teens, you may need only a 10-year level premium. The longer the policies, the more expensive they are.

Most whole life insurance policies are also paid for with level premiums.

See also: Death Benefit, Life Insurance, Permanent Life Insurance, Term Life Insurance, Universal Life Insurance, Whole Life Insurance