Level term insurance is an insurance type that provides coverage consistently for a given period of time. The face value of a level term policy remains unchanged for the duration of time selected. This type of insurance is common for specified years like 20-year term life insurance policies. Terms could range from 0 to 30 years or even more. Commonly however, the level terms lasts for 10- 20 years. Level term insurance assures one of temporary protection and does not have a cash value associated with it.

Most level term insurance policies are traded with guaranteed premiums that do not increase given the period of coverage. Nevertheless, some policies do not have guaranteed premium rates and the respective company could raise the premium during the term of coverage specified. Due to the rising probability of the death of the insured, there are premium increases in every given year.

For a level term insurance, the premium charges vary depending on the company offering insurance and your unique circumstance. The insurance company could charge higher premiums in cases where there are certain lifestyles, health conditions, and some occupations. In other cases there could be rejection of insurance due to health problems or other factors that are risky. Nonetheless, there are those companies that will offer insurance to high-risk applicants.

Normally, premiums in this type of insurance are lower than those of permanent policies. The length of the insurance is directly proportional to the term length. A 10-year one will offer fewer premiums than a longer termed one. Level term policy however, is less expensive than insurances that are renewable annually.

You may wonder what amount of level insurance you need. This depends on various factors like your estimated funeral costs, debts left behind, and long-term needs of the beneficiary. If you are married and have children, your coverage needs to be higher than that of an unmarried with no dependents. In general, the policy should cover the insured annual income at least 6 to 10 times.

To apply for this policy, one will need to complete an application form given by the respective company. These questions in most cases are personal and medical in nature. A medical test will most probably be required. This test is taken by a doctor and sent to the company. Some companies however offer level term policies without requiring a test. However in long terms like a 20-year term life insurance, a cap is usually placed.

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