What Is Level Term Life Insurance?
Thursday, May 24, 2007
Level term life insurance, the most common form of term life insurance, is a life insurance policy that gets straight to the point. It's similar to regular term life insurance in that it provides pure life insurance coverage when you need it with none of the frills of whole life insurance, such as forced savings components.
Level term life insurance has a guaranteed level premium, and you aren't required to annually renew the policy. The insurance premium stays the same for a set period of time - the length of time for which the policy is in effect (usually 10, 15, 20, or 30 years). The longer the policy is in effect, the higher the annual premium will be.
For example, if you purchase a level term life insurance policy for 10 years, you'll pay lower premiums than you'd pay if you purchase level term life insurance for 30 years. The reason for this is you'll get much older during the course of a 30-year policy than you'll get during the course of a 10-year policy, and life insurance companies view older individuals as more risky to insure. If you purchase a 10-year policy when you're 30 years old, you'll only be 40 years old when the policy expires; however, if you purchase a 30-year policy when you're 30 years old, you'll be 60 when the policy expires. It costs more to insurance a 60-year-old than it costs to insure a 40-year-old. Make sense?
Level term life insurance policies normally include renewal options. This means you can renew your policy at a maximum guaranteed rate if you choose to extend the term of insurance coverage. This option is usually only implemented if your health has greatly deteriorated during the original term of insurance coverage.
If level term life insurance sounds right for you, begin your search now and make your purchase as early as possible to ensure the lowest premiums possible.
Level Term Life Insurance Quotes Online Here Term Life Insurance Quotes and Information
Labels: insurance, insurance quote, life insurance
posted by sham @ 9:05 AM,
6 Comments:
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At 3:53 AM,
Neetu said...
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I like this life insurance policy type as one knows in advance about how long will one have to pay out the premium. When the duration gets finished one can renew it easily. I too have taken up one for 10 years.
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At 7:00 PM,
Raizu said...
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A financial planning might never be completed with out a wise planning for life insurance. A cheap life insurance will have a reasonable rate and very economical policies as well.Vermont life insurance company is a such good known life insurance company.
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At 10:45 PM,
Unknown said...
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Hi, It is Best to read terms and conditions for insurance.
Travel Insurance -
At 4:23 AM,
Frida said...
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Travel insurance is a must when travelling make sure you don't miss it it's worth paying.
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At 9:36 AM,
Travel Insurance said...
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I value the post.Much thanks again. Awesome.
travel insurance -
At 7:10 PM,
Unknown said...
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The approval should read the details first before signing the contract and must sought advice from his legal advice.
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