Level term insurance is a form of life insurance where the sum assured remains the same during the duration of the term. Level term life insurance policies last a specific number of years, with some insurance providers offering them for a term of 40-50 years or perhaps until the insured reaches 90 years old. Some contracts have a renewable option if a person needs to extend his or her insurance policy. However, renewing a level term life insurance policy may result in a higher premium.
The cost of level term insurance can vary. There are a number of factors that determine how much a person’s premium will be. One of those factors is a person’s health. People who are healthy will typically pay less for a level term insurance policy. Certain lifestyle choices, such as smoking, will also affect the amount of money a person pays for an insurance policy. Smokers typically pay more for their level term insurance policy.
Furthermore, a person’s occupation may influence the level term insurance premium. People who have risky occupations may pay more for level term insurance.
- Same Benefits And Coverage: Unlike many other insurance policies, you will not have to worry about your benefits decreasing. You will have the same benefits throughout your entire policy. Additionally, you will be paying the same premium during the entire time that you have the policy if you opt for guaranteed premiums.
- Less Expensive Than Whole Life Insurance: Despite the fact that life insurance is one of the most worthwhile investments that a person can make, many people feel that it is too expensive. That is why many of them choose to go without it. However, level term life insurance is much less expensive than a permanent life insurance policy.
- You Can Renew: With some plans if you decide that you still want to have coverage after your term limit is up, then you have the option of renewing. Some policies will allow you to renew up to the age of 75.
The amount of coverage needed can vary because every person’s life situation is different. For example, a person who is married with children will need to get more coverage than someone who is single with no children. In all honesty thee may be more appropriate and cheaper policies that we could offer you if the purpose of the policy is family protection or to protect a capital repayment mortgage.
In order to get a level term insurance policy, you will need to fill out an application or give us a call. This application can be filled out online. Because the cost of level term life insurance can vary from provider to provider, it is a good idea for us to compare quotes for you before you make your final decision. Keep in mind that quotes are only estimates, and the actual amount that you are paying may be higher or lower depending on your individual circumstances – Health, BMI etc.
You will have to answer several medical and personal questions when you are filling out the application. Unless you are over the age of 50 where “guaranteed cover” can be applied for (generally this is at a higher premium than standard underwriting but is sometime considered less intrusive than the normal application process).
Level term life insurance differs from whole life insurance policies. One major difference is the cost. Level term insurance is typically much less expensive than a whole life policy. The benefits of a level term life insurance policy are typically only paid out after the person dies or is diagnosed with a terminal illness as long as it is not within the last 12 (or in some cases 18) months of the policy. Conversely a level term policy is more expensive than a decreasing term (mortgage or loan related) life policy.
You should talk to us about the life insurance policy that is right for you. However, a level term life insurance policy provides sufficient coverage and benefits for many people.