Level term life insurance is the most basic and affordable type of life insurance available, and consumers who get and compare level term life insurance quotes will quickly realize this policy is the cheapest life insurance you can buy. Level term life policies offer pure life insurance, have term periods that may be as short as 3 months or as long as 30 years, fixed life insurance rates and provide a death benefit if the insured person should die prematurely and leave behind financial obligations. A level term life insurance quote can help an adult, parent, or senior citizen decide if this type of life insurance is the best policy for his or her family.
What Is Level Term Life Insurance?
Level term life insurance is temporary life insurance protection that pays a death benefit if the insured person dies within the policy term, and can be purchased in increments of 3 months or 5, 10, 15, 20, 25, or 30 years, with some life insurance companies even offering 40 year term life insurance. Term life insurance rates are fixed and based on the age, weight, and health of the insured person over the entire term of the policy.
Because term life insurance companies take on more risk when insuring an individual for a longer period of time, especially due to the higher risks of developing medical issues later on in life, life insurance rates are higher for policies with longer terms, making a 5 year term life insurance policy cheaper than a 30 year term policy.
However, if policyholders must renew their 5 year term life policy and buy another one, term life insurance rates will increase on the new policy. With term life insurance, the death benefit is not paid if the insured person does not die within the term of the policy and the insured person must usually seek new life insurance coverage when the policy expires.
Pros and Cons of Level Term Policies
Every life insurance policy has pros and cons, and consumers must compare the advantages and disadvantages of each term life insurance plan before making a decision to purchase coverage. The primary benefit of level term life insurance is the low cost and rates.
Unlike permanent forms of life insurance such as whole and universal life insurance, term life insurance does not accrue a cash value and premiums paid into the policy are retained by the insurer if the policyholder does not die within the policy period. Because term life insurance does not offer a savings account or investment component and there is no guarantee that the death benefit will be paid out, life insurance companies can offer term life policies at the cheapest rates.
However, level term life does provide the same insurance protection for families at more affordable rates than permanent life insurance policies, and a level term life insurance quote will demonstrate the affordability and difference in rates between term life insurance and whole or universal life insurance. Level term life insurance can be the best life insurance policy for young families or adults who need insurance coverage in case of a tragic death, but have a budget and need cheap life insurance rates.
Disadvantages of Level Term Life Insurance
Unlike permanent life insurance policies which remain in force for the insured person’s lifetime, assuming premiums are paid and the policy remains in good standing, term life insurance expires at the end of the term period and the insured person must usually seek new life insurance coverage at higher rates. This can mean reapplying and taking another medical exam, which may reveal future health issues and problems that will cause your risk and therefore term life insurance rates to increase. Some level term policies are available with a renewal option, allowing the policyholder to renew term life insurance without repeating the application process.
Because there are several different types of life insurance policies available to consumers, a level term life insurance quote comparison is essential to finding and buying the best life insurance for your needs, whether that is level term, renewable, convertible, or another term life insurance plan.
Why Buy Term Life Insurance?
Many families are unable to afford enough life insurance coverage with pricier permanent life insurance policies. In most cases, families, adults or seniors can afford all the protection they need with level term life insurance, buying the recommended 5 to 10 times their annual salary to provide adequate coverage for their families.
Though the amount of the death benefit you choose depends on your income vs. expenses, such as living expenses, mortgage payments, credit card and medical bills, education costs, and number of financial dependents, it is important to provide a family with all the financial support they would need if a wage earner died prematurely. Consumers can find out just how affordable term life insurance can be with a free, instant level term life insurance quote.
Free Life Insurance Quotes
MyLifeInsuranceQuotes101 offers free life insurance quotes from multiple top ranked life insurance companies. Individuals simply complete a short form with basic rating information, the amount of life insurance coverage (death benefit) they need, and can instantly receive term life insurance quotes.
The younger and healthier a person is when they apply for life insurance, the cheaper their life insurance rates and costs will be, so it is smart to get a term life insurance quote as soon as possible and compare the low rates before buying a policy. Even if you do not purchase life insurance now or in the immediate future, it is important that consumers understand the financial options available to them by comparing life insurance quotes, rates, coverage, and companies.
Level term life insurance is a good choice for many families since term life policies can provide the right amount of life insurance protection at the cheapest rates. An instant level term life insurance quote can help families compare affordable rates and find the best life insurance coverage for their needs. Just enter your zip code now to begin a free life insurance quote and see how cheap your term life insurance rates could be.