Are You Shopping for a Term Life Insurance Policy?
If so, you may have heard about "Level Term" plans and wondered what level term means and how it works?
Well, it’s the most popular type of term insurance plan. Level term offers the most affordable prices on life insurance and guarantees your premium will remain the same for the entire length of time you are insured by your policy.
Definition: Level Term Insurance coverage in which the face amount of a policy remains the same, neither increasing or decreasing, for as long as the policy remains "In Force".
In addition, the premiums remain the same each year for the entire duration (term) of your coverage.
Level term life policies may be available providing coverage for a period from 10-40 years. Some carriers may offer 5-year level term coverage.
Level Term Offers Several Key Benefits:
How Much Does Level Term Cost?
The premium you pay the insurance company for your life insurance coverage will be based on the amount of coverage you buy and the length of time you are insured.
Your age, gender and health also impact your rate for life insurance.
Other risk factors include your family health history, lifestyle, tobacco use, driving record, height-to-weight ratio, hobbies and occupation, among other things.
The younger and healthier you are when you purchase your term life policy, the lower your cost of coverage.
The shorter the duration of coverage and the lower the amount of insurance, the lower your cost of insurance.
Buying a level term insurance policy while you are young and healthy can help you lock-in a low rate that is guaranteed to remain the same for the duration of your policy.
Sample Rates for Level Term Policies:
$500,000 coverage for 20 year level term life insurance policy
How Much Level Term Insurance to Buy?
The answer will vary depending on your own personal situation. However, most experts recommend that you buy at least 7-10 times your annual income for life insurance.
So, if you earn $60,000 per year you may want to purchase somewhere between $420,000 up to $600,000 of term insurance.
In order to get a more accurate estimate of your needs you may want to use a term life needs calculator which will give you an accurate estimate based on your own personal situation and goals. And, it only takes about a minute or two to use the free calculator.
Does Level Term Require a Medical Exam?
It depends on your age, health, and the amount of life insurance you need. Usually, people over age 35 and requesting more than $50,000 of coverage will need an exam, which is paid for by the insurance company.
However, there are no exam term life policies available that offer very competitive pricing and allow you to begin your coverage within 24 or less, instead of waiting 6-8 weeks for your approval and policy.
Level Term Life Insurance Quotes
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