By: Larry Gilmore

Larry Gilmore — Tue, 04 Jun 2013 03:07:39 +0000

How does level term insurance work? Level term works in the same way that cash value permanent insurance works. Level term overcharges for pure insurance rates early on to undercharge for those same rates later. The excess money collected is invested and later is applied internally to combine with the premium to cover the true cost of insurance. The difference is with cash values the excess gain is returned as cash values to permanent policy holders rather than the insurance company.

By: Edward Harris

Edward Harris — Mon, 03 Jun 2013 23:30:44 +0000

Level term insurance is very popular since the death benefit remains the same for the duration of the contract. A mortgage insurance policy (not very popular any more) has a reducing death benefit that is often tied to the outstanding mortgage. Guaranteed level term insurance guarantees that the death benefit and premium will not increase during a specific period of time.

New answer on: How Does Level Term Life Insurance Work?

By: Larry Gilmore

By: Edward Harris