What Is Level Term Life Insurance & How It Works

Mar 11, 2018 (0) comment

level term life insurance

Wouldn't it be horrible to check your email or (snail mail) and find a notice that your monthly life insurance premiums have increased or that your coverage has decreased?

Well, guess what:

If you purchase the wrong type of policy, this can happen to you, but there is a way to avoid this, and that is a level term life insurance policy.

Today, I am going to explain to you the definition of level term life insurance, why it's important to have and how you can get life insurance quotes for a level term policy.


What Is Level Term Life Insurance?

“In Plain English,” level term life insurance is a term life insurance policy that guarantees the premiums will stay the same for a specific term length.  

On average, these terms are 5, 10, 15, 20 and 30 years.

This means that no matter what your premiums is when you get approved for your policy, it will stay the same until the end of the term.

If we keep in mind that our rates never change for the life of the policy, then it starts to make sense why the longer level term you choose, the higher the premiums.  

So:

All things being the same, a 30 Year level term policy will always cost more than a 5 year level term life insurance policy.

A majority of level term life insurance, also known as traditional life insurance, policies include the option to renew your policy.

At this renewal your rates are subject to change and usually people will only renew the policy if they can’t medically be approved for a new policy.

What Are Some Features of A Level Term Policy?

Unlike whole life insurance, which is considered a type of permanent life insurance, level term policies will eventually come to an end at a specific amount of time based on the policy you purchase. 

Level term life insurance policies have also been called fixed rate term life insurance since your rates are considered to be “Fixed” and non moving for the entirety of the policy.

Some additional things to note about level premium term life insurance policies are:

  • Your coverage amount will never change for the life of the policy
  • As Long as the policy is in-force the premiums stay the same
  • It is the most affordable type of life insurance coverage
  • It expires based on the term you choose, in either 5, 10, 15, 20 or 30 years.

Remember, your premiums will not fluctuate, they won’t go up or down no matter what happens to your health while you own the coverage.

This is always the best option for anyone who is on a fixed budget and can’t have their monthly expenses start to suddenly increase.

Why You Need A Level Life Insurance Policy?

The main reason to purchase a level term life policy is because they are the most affordable and they allow you to save money over the life of your policy. 

You will know exactly how long the coverage you have will last, and you will also know what you exact cost will be month to month.

There are other product types that aren’t level like a graded death benefit policy or and mortgage protection insurance policy.

The above policies both have limitations when it comes to being level.

A Graded death benefit policy will have a level premium, but not a level death benefit for the first 2 to 3 years.

During the first few years, your coverage amount (death benefit) is only the premiums you have paid into the policy + a few percentage points.

This means you must live for the specified period before your benefits will “Grade Up” to the full benefit amount.

Mortgage protection insurance, which is also called decreasing term life insurance policies work in the exact opposite way as a level term.

Therefore the longer you have a decreasing term policy, the lower the coverage will be and the lower the premiums will go.

Eventually you won’t have any coverage at all.  

Decreasing term policies are sort of dated and most companies are starting to not offer them anymore.

Based on all of the options, your best bet is going to be a level term life policy.

Sample Level Term Life Insurance Rates


Level Term Life Insurance Rate Chart For Men
​*Rates are based on a non-smoking male in preferred health looking for 30 years of coverage


AGE


$250,000


$500,000


$1,000,000


23 Years Old


$18.92


$​31.00


$​56.00


29 Years Old


$20.38


$​33.08


$60.17


33 Years Old


$21.63


$36.42


$​66.83


​39 Years Old


$28.29


$​49.75


$93.50


​43 Years Old


$38.71


$71.42


$​136.83


​49 Years Old


$​66.63


$​124.75


$243.50


Level Term Life Insurance Rate Chart For Men-Tobacco
​*Rates are based on a smoking male in preferred health looking for 30 years of coverage


AGE


$250,000


$500,000


$1,000,000


23 Years Old


$​59.54


$​​11​0.17


$​214.33


29 Years Old


$​72.25


$​126.83


$​247.67


33 Years Old


$​81.42


$​142.67


$​279.33


​39 Years Old


$​127.46


$​​238.08


$​470.17


​43 Years Old


$​180.79


$​350.17


$​694.33


​49 Years Old


$​​271.63


$​536.00


$​1,066.00


Level Term Life Insurance Rate Chart For Women
​*Rates are based on a non-smoking female in preferred health looking for 30 years of coverage


AGE


$250,000


$500,000


$1,000,000


23 Years Old


$​​15.58


$​​​25.17


$​​44.33


29 Years Old


$​​16.63


$​26.83


$​47.67


33 Years Old


$​​17.46


$​28.92


$​​51.83


​39 Years Old


$​​24.33


$​​​39.75


$​​73.50


​43 Years Old


$​​32.04


$​​56.42


$​​106.83


​49 Years Old


$​49.96


$​​92.67


$​​179.33


Level Term Life Insurance Rate Chart For Women-Tobacco
​*Rates are based on a smoking female in preferred health looking for 30 years of coverage


AGE


$250,000


$500,000


$1,000,000


23 Years Old


$​​46.21


$​82.67


$​​159.33


29 Years Old


$​54.33


$​​97.25


$​​188.50


33 Years Old


$​​59.75


$​109.75


$​2​13.50


​39 Years Old


$​72.04


$​​138.08


$​270.17


​43 Years Old


$​​101.21


$​​194.75


$​​383.50


​49 Years Old


$​174.54


$​337.67


$​​669.33

How To Get Level Term Life Insurance Quotes

The fastest way to get level term life insurance quotes is to use our quote tool on the right side of your screen.  

The fastest way to get the level term life insurance quotes is to use our quote tool below or by visiting our term life insurance quotes page.

We don’t need any personal information to run you a quote, this way you can decide if you want to purchase term life insurance not.

The other option is to reach out to an agent or search other quoting sites for a level insurance policy.   

But be warned that getting quotes on multiple sites can get you called over 100 times.  I wrote a guide here on how to avoid that.

Either way, choosing a level term insurance policy will help keep your family covered, decrease costs over time and help you avoid random expenses.

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