A level premium is a type of life insurance premium that is regularly used with term life insurance. The term "level premium" basically means that you are going to have the same premium payment for the entire life (duration) of the life insurance policy.
Level Premium
If your premium is set up to be paid monthly, you are going to pay the exact same amount every month for the lifetime of the policy. With this type of life insurance policy, you are only going to receive a death benefit in exchange for your premium payments. No cash value is going to accumulate with this type of life insurance policy, as it would with a whole life or universal life policy.
Implications
Whenever an individual uses a level premium life insurance policy, they are going to be paying more than they need to on the front end of the life insurance policy. However, this is going to level out because they will be paying less than what they need to pay towards the back end of the life insurance contract. Whenever you are purchasing this type of life insurance, you will want to make sure that you get a guarantee that your premium payments will remain level the entire life of the term insurance policy.
Here's how you can learn more about level term life insurance and request your free life insurance quote comparisons online.
Level Premium
If your premium is set up to be paid monthly, you are going to pay the exact same amount every month for the lifetime of the policy. With this type of life insurance policy, you are only going to receive a death benefit in exchange for your premium payments. No cash value is going to accumulate with this type of life insurance policy, as it would with a whole life or universal life policy.
Implications
Whenever an individual uses a level premium life insurance policy, they are going to be paying more than they need to on the front end of the life insurance policy. However, this is going to level out because they will be paying less than what they need to pay towards the back end of the life insurance contract. Whenever you are purchasing this type of life insurance, you will want to make sure that you get a guarantee that your premium payments will remain level the entire life of the term insurance policy.
Here's how you can learn more about level term life insurance and request your free life insurance quote comparisons online.
RSS Feed
