The probability of a person dying during a defined time frame increases with age. Therefor the cost of insuring a person increases as he or she ages.
Level benefit term life insurance keeps the death benefit the same regardless of age or health condition. To balance out the level death benefit the policy premiums will rise as the policyholder ages. Many policies will increase rates at defined age bands.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A level benefit term life insurance policy states that the death benefit will remain the same for the life of the policy.
Term life insurance guarantees the premiums will remain fixed for a specific number of years (5, 10, 15, 20, 25, or 30 years). After the initial period of premium guarantee expires (the term period), the policy will be annually renewable and premiums will increase each year (based on age).
Great question! You ever get those policy offers in the mail where they have a chart that shows the rates for different age groups? (or hear the one on TV that says "term life insurance for $19.99?") Look closely, and you will see where every 5 years the rate increases. These policies want to give you a specified amount of coverage, and as it becomes more expensive for them, they pass that cost on to you. The longer you live, the more expensive they become. (Until your 80th birthday, at which point most of them let you go, and your coverage ends.) Other types of life insurance policies figure that cost in, and charge you a level premium for the life of your policy. If you would like more information, please feel free to contact me, I'm happy to help. Thanks for asking!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
If you have or are considering what you refer to here as a "level benefit" term life insurance policy to meet your needs, then it means that for the life of the term the death benefit will not change. This can be different from what are commonly referred to as "Level Term" policies in that with those, not only does the death benefit remain the same, but so too does your premium for the specific period of time you are purchasing. Commonly you will find these offered at 10, 15, 20 and 30 year terms. Once the policy is in force beyond the level premium term purchased, the premium will then increase each year based upon your attained age.
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Level benefit term life insurance keeps the death benefit the same regardless of age or health condition. To balance out the level death benefit the policy premiums will rise as the policyholder ages. Many policies will increase rates at defined age bands.
Term life insurance guarantees the premiums will remain fixed for a specific number of years (5, 10, 15, 20, 25, or 30 years). After the initial period of premium guarantee expires (the term period), the policy will be annually renewable and premiums will increase each year (based on age).