Level Term Insurance
Term insurance on which the face amount remains level for the entire term while the premium stays constant for the period.
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Practice This Concept
In a level term life insurance policy, the death benefit and the premium:
Remain the same for the entire term of the policy — A level term policy guarantees a level death benefit and a level premium for the entire term period, such as 10, 20, or 30 years. Because mortality risk rises with age, the level premium is higher in the early years than an annual renewable term premium, but it does not increase during the term. At the end of the term, the policy may be renewable or convertible under the contract, or it may simply expire, depending on the policy's provisions.
National insurance concept
A level term insurance policy is characterized by which of the following?
A death benefit and premium that remain level for the stated term period — Level term insurance provides a level death benefit for the entire term period, such as 10, 20, or 30 years, and is usually sold with a level premium for that period. Because neither the benefit nor the premium changes during the term, the cost is predictable. Level term is a popular choice for coverage needed for a specific number of years, such as the term of a mortgage or the working years until retirement.
National insurance concept
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