Best Level Premium Term Life Insurance Policies
Best Level Premium Term Life Insurance Policies
Level Premium Term Life Insurance is the simplest and most common type of term insurance.
It is what most people probably think of when they hear the term “life insurance.”
Like all term insurance, level premium term provides life insurance coverage for a specific time period.
With a level premium term policy, the death benefit remains the same throughout the term of the policy.
The premium payments also remain the same.
For example, say you purchase a $100,000 10-year level term policy.
Your premium payment would be the same every month for the entire 10 years.
If you die any time during the 10-year period the policy is in force, your beneficiary would receive $100,000.
Level term is most appropriate when your insurance need will remain the same throughout the policy term.
If you still need insurance at the end of the term, premiums may be sharply higher when you apply for a new policy.
What is Term Life Insurance?
Term Life Insurance is only a death benefit.
If you pay the premium, in the event of death while covered by the policy, the insurance company will pay the policy death benefit.
When considering Term Life Insurance, you should first determine the length of time you need the coverage and then look at the total cost over those years.
Term insurance premiums may be based on annual renewable, 5, 10, 15, 20, 25, or 30 year level premium arrangements.
For short term needs such as to cover a bank loan or business obligation, annual renewable, 5 or 10 year level premium policies are often the cheapest.
For longer periods of time, 15, 20, 25, or 30 year level premium policies are often the best buy.
Consumers with long term needs should be aware that if they keep a level premium term life insurance policy longer than the initial level premium guaranteed period, their premiums will increase substantially or may not renew.
Note that in some states level premium term life insurance may be limited in the number of years of coverage, or it may not be available above a certain age.
If the type of term insurance policy you request is not available in your state, we will help find the right option for you.
Level Term Life Insurance Advantages and Disadvantages
- Initial premiums are generally much lower than those for permanent insurance, allowing you to buy higher levels of coverage at a younger age when the need for protection often is greatest.
- It’s good for covering needs that will disappear in time, such as mortgages or car loans.
- You can lock in term rates for a specific period of time, usually between 1 and 20 years.
- Coverage may terminate at the end of the term or become too expensive to continue.
Uses of Level Premium Term Life Insurance
Level Premium Term Life Insurance policies will be most appropriate for the following life situations and needs:
• If your budget is tight then term insurance is a better option as cash value insurance costs much more.
• Term insurance would also be suitable for a person with low income but requiring a large cover to protect his family’s financial future in case of his demise. For similar rotect his family’s financial future in case of his demise. For similar reasons, this type of insurance would also suit a person who is the sole breadwinner in the family and has moderate income.
• Persons on the threshold of new careers or business ventures can save on costs by buying term insurance instead of a cash value policy so that they can utilize their balance income or capital to develop their career or business.
• Term insurance is also suitable if you have taken a large loan such as housing loan, car loan etc. Further, it is relevant persons who have invested substantially in new ventures by borrowing at high interest rates or by mortgaging their property. Such persons can cover the risk of their dying before repaying all loans by taking term insurance which is cheaper than the other types of insurance.
• It can be used to cover the risk of business loss due to untimely death of key persons by cash strapped enterprises as key man insurance at low cost.
Level Premium Term Life Insurance Purchasing Tips
Here are a few tips to keep in mind when purchasing a life insurance policy:
Take your time. On the other hand, don’t put off an important decision that would protect your family. Make sure you fully understand any policy you are considering and that you are comfortable with the company and product.
After you have purchased an insurance policy, keep in mind that you may have a “free-look” period usually 10 days after you receive the policy during which you can change your mind.
During that period, read your policy carefully.
If you decide not to keep the policy, the company will cancel the policy and give you an appropriate refund.
Review the copy of your application contained in your policy.
Promptly notify the agent or the company of any errors or missing information.
Review your policy periodically or when your situation changes to be sure your coverage is adequate.
Level Premium Term Life Insurance Exam Preparation Tips
Tips for best results with your life insurance medical exam:
- The initial application and medical questions provide basic information to the company you have selected for your life or disability insurance. Depending on the application or the exam results, the insurance underwriter may also contact your physician(s) for more information. If this is the case and the physician’s office hasn’t responded to requests within a reasonable time, we may ask you to make a call to your doctor’s office to keep things moving forward.
About the exam:
- Blood and urine tests are almost always part of the process today. These tests are administered by licensed paramedics or physicians. The examiner will schedule with you directly. Allow at least forty-five minutes (full physician exams take an hour or longer).
Blood Tests, Urinalysis, and Blood Pressure Readings:
- If your tests do include blood work (most do), you will be tested for the HIV antibody / antigen. Read the AIDS testing authorization and disclosure statement carefully for specifics on that test. A positive test does not necessarily mean you have AIDS, but it will result in declination of insurance coverage. Please read the disclosure statement carefully. The insurance industry is regulated by stringent privacy laws, so a positive test will remain confidential.
- These tests run best if you have fasted for twelve hours beforehand. Therefore, whenever possible, schedule your test for the morning, and skip breakfast. Avoid coffee or tea the morning of the exam as caffeine can elevate your blood pressure, which will be measured. Also avoid soda and sports drinks which can elevate your sugar, cholesterol and other readings. Do drink a moderate amount of water a few hours prior to the exam to hydrate your veins and to allow for moderate urination. If you must be tested in the evening, avoid rich foods especially the day of the exam. In general, avoid excessive salt, alcohol, high-fat foods and candy for several days prior to your exam.
- Blood tests screen for cholesterol levels and other biochemical ratios, and provide information on kidney and liver functions, diabetes and immune disorders, and drug use. Eating well balanced, light meals several days beforehand will keep these tests from being skewed and will produce a more favorable blood pressure reading as well. Avoid dinner rolls with poppy seeds for several days; they may show traces of opium, which is used in a variety of illegal drugs.
- If you smoke or use tobacco in any other form, admit it. Nicotine shows up for longer than you could normally refrain, unless you’ve really quit for good. If you don’t tell the truth about smoking, insurance underwriters assume you’ll have other things to hide about your health. (In addition to the exam issues, hiding tobacco use is considered a “material misrepresentation”, and in some cases can jeopardize a claim payment to your family.)
- Try to get a good night’s sleep, or find time to unwind if an exam is scheduled in the afternoon or evening.
- If your policy is issued on a standard or preferred basis, you have passed some basic screening exams that your doctor might routinely run. It is possible that your insurance is not offered at a standard rate, or worse, declined altogether. If you are borderline, paying careful attention to the above tips should help. Should you be subject to a higher rating, or declined, the reasons behind these decisions are strictly confidential. Specifics will be released only to your doctor, as they may be based on his/her records on you. Any health questions should be reviewed with your physician only.
The right life insurance coverage for each and every one of our customers is unique.
Talk with the Mintco Financial team today to find out how to protect your family and your future with the right life insurance.
Call us at 813-964-7100
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