Level Term Life Insurance
The most basic and most competitive type of life product available.
Level term life insurance is the simplest life product on the market. It’s pure insurance, with no clever investment add-ons, it covers you for a specific term, and it’s worthless at the end. Cheap and cheerful.
Level term life insurance is by far the most basic form of life insurance. That often makes it the cheapest, but before you sign up, make sure it’s right for you (you wouldn’t buy a small car when you’ve got four kids, just because it’s the cheapest, would you!)
Level term life insurance only covers you for a set, designated period. If you want to cover your whole life, then consider (not surprisingly) whole life insurance.
Level term life insurance pays out a specific sum should you die. If you want the payout to increase (for example to cover inflation) then look at an increasing term.
When it expires, a level term life insurance policy is worthless. If you want to use your life policy as an investment vehicle, then consider a whole life policy or an endowment policy, both of which have an investment component.
And finally, level term life insurance isn’t renewable- you have to sign up again, and take a new medical test. If after a ten year term you’ve picked up some health worries, your new policy will be more expensive. If you think you might want a continuation, then consider a renewable policy which will cost a little more now but allows you to extend the policy without any more questions.
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