The best level term life insurance plan and length of term depends on how long you actually need your life insurance coverage.
Level term life insurance provides you with premiums that remain the same each year throughout the term (duration) of your policy, while the amount of life insurance coverage also stays the same each year.
Since the length of time you have coverage affects your rate, the longer the term of your term life plan, the higher your rate.
So, a 30 year term life policy will cost more per year than a 20 year term life plan.
However, a 30 year term life plan guarantees that your rate will remain the same each year for the 30 year period. Whereas, if you buy a 20 year level term plan and realize you need 10 more years of life insurance when your 20 year term life plan expires, the rate you pay for a new policy may be much higher at that time, compared to an annual premium for a 30 year level term policy.
That's why it's very important to understand how your level term life insurance plan works, and what rate is guaranteed before you buy your life insurance.
Learn more about level term life insurance rates and plans and compare prices online among leading life insurance carriers.
Level term life insurance provides you with premiums that remain the same each year throughout the term (duration) of your policy, while the amount of life insurance coverage also stays the same each year.
Since the length of time you have coverage affects your rate, the longer the term of your term life plan, the higher your rate.
So, a 30 year term life policy will cost more per year than a 20 year term life plan.
However, a 30 year term life plan guarantees that your rate will remain the same each year for the 30 year period. Whereas, if you buy a 20 year level term plan and realize you need 10 more years of life insurance when your 20 year term life plan expires, the rate you pay for a new policy may be much higher at that time, compared to an annual premium for a 30 year level term policy.
That's why it's very important to understand how your level term life insurance plan works, and what rate is guaranteed before you buy your life insurance.
Learn more about level term life insurance rates and plans and compare prices online among leading life insurance carriers.
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