Level Term Life Insurance

Written by Genevieve Hawkins
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If you are under the age of 60 and are considering investing in life insurance, level term life insurance may be a good type of policy to get. Level term life insurance policies can be purchased in 10, 15, or 20 year increments. They do not increase over the course of the term, and most can be paid with low monthly fees.

Advantages of Level Term Insurance

Unlike other forms of life insurance, which may go up with time based on risk factors, the payments for level term life insurance policy stay the same throughout the life of the policy. If you become disabled before the age of 65, you may be eligible to rescind payments and still receive benefits. And many can be later restructured into a more permanent type of life insurance policy.

Most level term life insurance policies begin with a basic assessment of current risk of mortality in the next 10, 15 or 20 years. The death benefit that would be paid to the beneficiary is then calculated, and the monthly payment amount is then set. If after the set amount of the term there is an additional or greater need for life insurance, the risks can then be reconfigured.

Level term life insurance policies are generally only available for people between the ages of 20 and 60. The disadvantage is that if you do not die during that time, there is no payment offered. However, considering the cost of many other policies and the guarantee of static monthly payments on policies, it is certainly a widely used and beneficial form of coverage.


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