Level Term Life Insurance Details, Quotes, and Companies

Learn about Level Term Life Insurance



The first advantage of Level Term life insurance is probably the most obvious – the privilege of paying a constant premium during the full length of the policy. This greatly simplifies financial planning. An important secondary advantage derives from the level premium feature. ART requires an annual appraisal of insurability as the basis for calculating mortality risk. Any unexpected change in medical status – due to a chronic or terminal illness, or an accident – would cause a premium increase. Level term life insurance transfers this risk from the insured to the insurance company.



These advantages have given level term life insurance an edge over ART. Level Term life insurance also boasts the same advantages as regular term insurance over other forms of life insurance. Alternative types of life insurance generate a cash value, which requires the life insurance company to hold and manage reserves and incur additional administrative costs. The premiums and administrative costs of level term life insurance are kept as low as possible by the fact that the insured has no investment program and pays only for mortality risk.