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

Mortgage life insurance

References in periodicals archive

RADNOR, Pa: Lincoln Financial Group advanced availability of Lincoln TermAccel(r) Level Term insurance to clients up to age 60 and coverage amounts up to $1 million.

Lincoln Financial Group expands Lincoln TermAccel(r) Level Term insurance

With level term insurance you pay a monthly premium and it pays out a set amount if you die within a set period of time, for example PS200,000 if you die within the next 20 years.

Get the right cover in case the worst should happen

The digital solution recognized by Celent is Lincoln TermAccel Level Term insurance. Lincoln TermAccel is a next generation solution that provides affordable coverage for a wide range of clients ranging from millennials to late Gen Xers, complete with a digital buying experience.

Lincoln Financial Group wins Celent "Model Insurer" award

Conversion comes at a price on it tends to be 10 per cent more expensive than basic level term insurance.

Benefits of 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.

Making the move: regulatory changes have forced life insurers to explore new ways to fund reserves

This can be either as a lump sum payout from a level term insurance, that can be invested to help support the family.

It may well happen to you

If you wish to provide a lump sum which could be invested to provide income then probably a Level Term insurance would be most appropriate.

Since you ask

The final Term policy is MetLife's Level Term Insurance. The life insurance protection for this policy remains level during its activity and may be taken out in terms of 10, 15, 20 or 30 years.

Insurance companies at a glance

The premiums on these policies are cheaper than for level term insurance.

Choosing the right policy..