Level term life insurance is a form of life insurance that offers a level death benefit for the entire term of the policy. It can help protect your loved ones financially in the event you suddenly pass away. Let’s dive deeper into what level term life insurance is and how it works so you can decide if it makes sense for your unique situation.
With level term life insurance, you can expect a set premium and death benefit that will stay the same throughout the entire term of the policy. While term lengths can vary, this policy typically lasts between 10 and 30 years.1
If you choose this type of life insurance policy, your beneficiaries will receive the same death benefit or payout, regardless of if you die in the fifth year of the policy or last year.1 Due to the stable coverage options offered, level term life insurance is a common type of coverage.2
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The most noteworthy benefits of level term life insurance include:
Compared to other types of policies, level term life insurance usually comes with lower premiums. If you’re young and healthy, you can lock in up to 30 years of coverage with rates to likely fit your budget.2
Level term life insurance can be easier to understand and maintain. Once approved, you will pay your premiums and receive your coverage.
If you choose level term life insurance, you can budget for your premiums because they’ll stay the same throughout your term. Plus, you’ll know exactly how much of a death benefit your beneficiaries will receive if you pass away, as this amount won’t change either.
The rates for level term life insurance will depend on several factors, like your age, health status, and the insurance company you choose. In most cases, however, you can find coverage that fits most budgets. For example, a 35-year old man or woman in good health may secure a 20-year policy with a $250,000 death benefit for less than $20 per month.3
Unlike level term life insurance, decreasing term life insurance features premiums and a death benefit that decrease throughout the term.4 A decreasing term life policy is designed to help cover policyholders that may have less of a need for coverage as time goes on. For instance, those with large debts that they’re paying off gradually, such as a mortgage, may consider getting a decreasing term life policy.
If you’re interested in getting level term life insurance, follow these steps:
Not all level term policies are created equal. Shop around and compare your options to find the right one to meet your budget and needs.
Next, figure out the coverage amount and term length you need. Keep in mind that factors like your health and age will affect the cost of your premiums.
Once you’ve chosen an insurance company and policy type, complete your application form. Be prepared to provide any necessary details about your health and lifestyle.
If your policy requires a medical exam, you’ll need to arrange a time to take one. Fortunately, the process of taking the exam may be relatively quick.
Once you go through the application and medical exam, the life insurance company will review your application. They should inform you of whether you’ve been approved shortly after you apply.
Upon approval, you can pay your first premium and sign any relevant paperwork to ensure you’re covered. From there, you’ll pay your premiums on a monthly or annual basis.
To customize a level term life policy, you might want to explore these options offered by some insurers:
Aflac’s term life insurance is convenient. You can choose a 10, 20, or 30 year term and enjoy the added peace of mind you deserve. Working with an agent can help you find a policy that works best for your needs. Learn more and get a quote today!
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1 Nerdwallet - Understanding Level Term Life Insurance. Updated February 23, 2023. https://www.nerdwallet.com/article/insurance/level-term-life-insurance. Accessed April 1, 2023.
2 MoneyGeek - What Is Level Term Life Insurance: Pros, Cons & Who Should Buy. Updated February 9, 2023. https://www.moneygeek.com/insurance/life/types/level-term/. Accessed April 1, 2023.
3 Policygenius - Understanding Level Term Life Insurance. Updated March 30, 2023. https://www.policygenius.com/life-insurance/level-term-life-insurance/. Accessed April 1, 2023.
4 Investopedia - Decreasing Term Insurance: Definition, Example, Pros & Cons. Updated July 4, 2022. https://www.investopedia.com/terms/d/decreasing_term_life.asp. Accessed April 1, 2023.
Life – 68000 Series - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term/Whole Life – B60000 Series – In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life - Q60000 Series - In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Group Term Life Q60000 Series - In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
The content herein is provided for general informational purposes and is not provided as tax, legal, health or financial advice for any person or for any specific situation. Employers, employees and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac insurance coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage underwritten by American Family Life Assurance Company of New York.
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