Affordable Life Insurance Protection for Your Family
Learn How Level Term Life Insurance Works
If you are considering the purchase of a life insurance policy to provide financial security and protection for your family, you may have heard about Level Term life insurance.
Most people shopping for a life insurance policy need term life.
This type of life insurance, which expires after a specific number of years (the "Policy Term") is affordable and easy-to-understand:
Most people buying term insurance are actually buying Level Term, an important distinction that guarantees you pay the same price for your policy no matter how long it’s active. That means, your premium is the same each year you are insured.
If you’re looking for a basic financial safety net to make certain your loved ones are secure in the event of your death, level term life insurance is the best option for anyone who needs life insurance lasting for 30 years or less.
It’s also one of the most common life insurance policies offered by insurance carriers, so it’s easy to compare premiums online, and get the best price.
We will review for you what level term is and how level term policies work.
What is Level Term Life Insurance?
Level term life insurance, like all term policies, lasts for a set period of time — typically 10 to 30 years — before it expires.
The word "Level" is key to the definition:
When people mention term life insurance generically, they usually mean level term insurance.
Level term life insurance follows the same basic process as other life insurance policies:
Features of Level Term Life Insurance Policies
How Long Does Level Term Coverage Last?
Usually, you may choose a duration of level term life coverage lasting for a period of 10, 15, 20, 25 or 30 years.
The longer your policy term, the higher your annual cost of life insurance, because you have a higher probability of dying as you get older.
How Much Does Level Term Insurance Cost?
Level term is the most affordable life insurance for most people. Your premiums are decided based on your age, gender, health, medical history, and other risk factors, like your tobacco use and lifestyle.
The rate per $1,000 of life insurance coverage is multiplied by the amount of insurance to determine your premium for coverage.
For example, if your rate is $3 per $1,000 of coverage and you need $100,000 of life insurance, your premium would be $3 X $100 = $300 per year.
Level Term Life Rates
Women generally pay lower life insurance premiums than men but individual health backgrounds and other risk factors will impact the final price.
Note that even for affordable level term policies, the cost of life insurance increases with age, rising an average of around 5-9% per year.
If you need to buy life insurance, buying sooner, when you’re younger and likely healthier, is best, because you will be able to lock-in the lowest rate for the duration of your term life policy, for up to 30 years.
What Factors Affect My Rate for Level Term Life Insurance?
There are several factors that impact your rate per $1,000 of level term insurance coverage, including your age and gender.
In addition, several personal risk factors will affect your rate, including but not limited to your health, family health history, lifestyle, tobacco use, occupation, hobbies, driving record, height-to-weight-ratio, etc.
What Happens to Level Term Life Insurance at the End of the Policy Term?
When you reach the end of your policy’s term, the insurance coverage expires.
At that time, you have a few choices:
Advantages and Disadvantages of Level Term Life Insurance Plans
Although level term insurance may be right for many of us, there are still some Pros and Cons to consider before choosing your plan:
Advantages of Level Term Life Insurance
Disadvantages of Level Term Life Insurance
Level Term Life Insurance Quotes
Top Pick – JRC Insurance Group
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Highly Recommended – Haven Life Insurance Agency
Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.
Applicants age 60-64 are eligible to apply for up to $1 million in coverage; subject to underwriting approval.
Some qualified applicants (U.S. citizens up to the age of 59) will be able to finalize coverage without the need for a medical exam. The majority of applicants are still required to take a medical exam.
Keep in mind: Issuance of the policy or payment of benefits may depend upon the answers given in the application and the truthfulness thereof.