What is level term coverage? It is a form of life insurance protection.
The two basic types of life insurance are term and permanent.
Permanent plans offer lifetime cover that builds cash value inside your policy.
Term life offers temporary cover for a certain number of years.
It usually lasts for a period of 1-30 years, or until you reach age 65 or 70.
Many plans are available for a period of 10, 15, 20, or 30 year options.
For instance, if you have a 30 year home mortgage you may want to consider purchasing a 30 year policy to provide protection to pay off your outstanding home mortgage if you should pass away during the duration of your policy.
Level term offers guaranteed level premiums each year of your policy.
So, you pay the same amount of premium each year you are covered.
In addition, the amount of protection remains the same each year for the entire period of your policy.
Another form of coverage is decreasing-insurance that provides level premiums each year, but the amount of life insurance decreases each year over the life of your policy.
Term life offers an affordable option for life insurance protection compared to permanent life insurance that may cost more because it provides an investment portion within the policy.
Level rates increase with your age, which means, the longer you wait to buy a plan, the higher your rate based on your age.
In addition, the length of your policy will affect the premium you pay.
A 20 year policy usually costs more than coverage for a 10 year period, because the chances of you passing away are higher for a 20 year period, that for a 10 year period of time.
If you outlive the duration of your policy, the coverage expires.
Adding the option to renew your policy at expiration will cost more but allow you the chance to continue your coverage, if you need it longer than the current term.
Several things to keep in mind when considering term policies include the following: 1.
Length of your plan - for how many years you are insured? 2.
Renewable Option - Do you need the option to renew the policy? 3.
How much life insurance do you need? 4.
Does your spouse need life insurance coverage? 5.
Payment Options - Annual premiums may cost less overall than making monthly payments.
Finally, return premium term plans offer you the chance to get most of your premium back if you outlive the life of your plan.
However, the rates are usually much higher than regular term insurance plans.
The two basic types of life insurance are term and permanent.
Permanent plans offer lifetime cover that builds cash value inside your policy.
Term life offers temporary cover for a certain number of years.
It usually lasts for a period of 1-30 years, or until you reach age 65 or 70.
Many plans are available for a period of 10, 15, 20, or 30 year options.
For instance, if you have a 30 year home mortgage you may want to consider purchasing a 30 year policy to provide protection to pay off your outstanding home mortgage if you should pass away during the duration of your policy.
Level term offers guaranteed level premiums each year of your policy.
So, you pay the same amount of premium each year you are covered.
In addition, the amount of protection remains the same each year for the entire period of your policy.
Another form of coverage is decreasing-insurance that provides level premiums each year, but the amount of life insurance decreases each year over the life of your policy.
Term life offers an affordable option for life insurance protection compared to permanent life insurance that may cost more because it provides an investment portion within the policy.
Level rates increase with your age, which means, the longer you wait to buy a plan, the higher your rate based on your age.
In addition, the length of your policy will affect the premium you pay.
A 20 year policy usually costs more than coverage for a 10 year period, because the chances of you passing away are higher for a 20 year period, that for a 10 year period of time.
If you outlive the duration of your policy, the coverage expires.
Adding the option to renew your policy at expiration will cost more but allow you the chance to continue your coverage, if you need it longer than the current term.
Several things to keep in mind when considering term policies include the following: 1.
Length of your plan - for how many years you are insured? 2.
Renewable Option - Do you need the option to renew the policy? 3.
How much life insurance do you need? 4.
Does your spouse need life insurance coverage? 5.
Payment Options - Annual premiums may cost less overall than making monthly payments.
Finally, return premium term plans offer you the chance to get most of your premium back if you outlive the life of your plan.
However, the rates are usually much higher than regular term insurance plans.