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Level Term Life insurance Definition

 A level term policy is not permanent, but the death benefit and the premium rate stay the same for the policy’s specified term. Most term life insurance policies are what is known as a “level term policy.” A level term policy may be renewable at the end of the policy term period for a highly increased rate, but this is not guaranteed, and it doesn’t mean that the policy isn’t a level term policy because the death payout and the premium stayed level for the guaranteed portion of the policy. You can also buy a non-level type of term life insurance called annually renewable term, and the premium changes each year as the insured person gets older.

People buy this type of life insurance because the benefits and costs are predictable and generally affordable. When people refer to a “term life insurance policy,” they are usually talking about the level term as it is far the most common type of term policy sold. You can get an excellent deal on a level term policy compared to whole life or universal life, but you sacrifice some awesome feature

Level Term Life insurance Advantages And Disadvantages

level term life insurance Advantages

  • unchanging premiums or death benefits with predictable financial protection
  • Easy to comprehend, with only a few extra fees or additional components
  • The cheapest form of life insurance for most people.

level term life insurance disadvantages

  • level term life insurance It expires, so you may need to buy a new, more expensive policy afterward
  • If you outlive the policy, premiums aren’t refunded 
  • No cash value 

Pros And Cons Of Term Life insurance

 

Term life insurance is made for temporary coverage with no bells and whistles with permanent policies. This is a benefit and disadvantage simultaneously, based on your financial objectives. The primary pro of term life is that you’re buying pure life coverage without getting additional charges for potentially unnecessary features involving savings and investment. And with your premiums, you’re getting the most death benefit at minimum upfront cost. The main con of life is that you’re getting time-limited coverage with climbing premiums that can ultimately leave you uninsured.

 

Term insurance

Term insurance is a life insurance plan that provides coverage for a certain period or a specified “term” of years. If the insured dies during the period specified in the policy and the policy are active or in force, a death benefit will be paid

 

Renewable Term Life Insurance

A renewable term is a clause in a term insurance policy that allows the beneficiary to extend the coverage term for a set period without re-qualifying for new coverage. A renewable term is contingent on premium payments being up to date and a renewal premium being paid the beneficiary.

Term Life insurance Quotes For Seniors

A term life insurance policy may be a good, low-cost option if you’re in excellent health for your age and willing to take a medical exam.

If you shop for life insurance in your 60s and 70s, you can typically secure a 10- or 20-year term life policy, but if you’re over 80, you’ll likely have difficulty finding term life coverage.

Because term life is temporary, it’s best used to cover debts, such as a mortgage, or provide financial support for a spouse or dependent should you die during the policy term.

Find your rate >HERE

Term Life insurance Rate Chart By Age

In their 20’s most if not many younger persons are starting to consider life insurance. Since most young people are focused on creating their new career, finding a spouse, and begin their families.

Life insurance can sometimes take a backseat compared to starting to invest, paying off student loans, and purchasing your first home.

Young people, many times, are often postponing life events, which usually mean purchasing life insurance. Getting married later in life, having children older, and delaying buying a home.

But, many people should buy life insurance in their 20’s and 30’s. Over 50% of millennials life insurance, according to a market study conducted LIMRA.

Why not? The life insurance cost for a 20-year-old is less than $15 per month for a $250,000 policy for 20 years.

Millennials typically buy life insurance because they wish to protect their spouse, a child, income, or cover a mortgage.

Have you already started a family?

Protecting your family is a worry that can be easily be eliminated with the purchase of life insurance.

How much insurance for a 30-year-old?

Buying life insurance for young people usually has the advantage of typically being in excellent health. Because they are young and in good health, you will find the cost of life insurance for a 30-year-old to be very affordable.

What is the best life insurance for a 30-year-old?

Typically, we find that both 20-year term life insurance and 30-year term life insurance are trendy millennials’ choices. If you check the term life rates age chart, you may be surprised how affordable life insurance is for younger buyers. Since insurance coverage is very reasonable, many young couples with many financial responsibilities elect to lock into a $500,000 life insurance policy.

The chart below offers sample pricing for people that are age 20 and over. This sample contains non-smoking life insurance rates for a 20-year-old male and a 30-year-old male, with coverage lasting between 10 and 20 years.

Term Life Insurance Rates Age Chart

Age            $250,000           $500,000        $750,000           $1,000,000

                   10 year              10 year           10 year               10 year

Age 20       $11                        $14                   $19                        $21

Age 30       $12                       $15                    $20                      $22

                 15 year                15 year            15 year               15 year

Age 20      $11                        $16                    $21                       $25

Age 30      $12                       $17                     $23                      $26

                  20 year              20 year           20 year              20 year

Age 20     $13                        $21                    $29                       $35

Age 30     $15                        $22                   $29                        $37

* The term life insurance rate chart represents the average life insurance cost for both a 20 and 30 year old non-smoking male.

Take notice of the example rates on the tables above for both ten and 20-year terms. See how there is very little difference between the average cost for life insurance per month for ten years and a 20-year term.

So, it just makes good sense for younger people to lock in their rates for a more extended period

To find an exact quote for your age click >HERE

Life insurance For Seniors No Medical Exam

If you’re between 50 and 80, in some cases 85 years old, your life insurance acceptance is guaranteed with this policy, regardless of your health history. There are no medical exams to complete or lengthy health questionnaires to fill out.

To find an exact quote for your age click >HERE

Life insurance Over 65

Many people are working longer today than they did before. If you are over 65 and still employed, it may mean you could have others relying on your income. It may be your spouse, or you may take care of a child or other relative whose health is failing. And many people who are 65 and over typically have some debt, and a life insurance policy can help ensure that you won’t leave it for your loved ones to pay. HERE

Life insurance For Seniors Over 75 No Medical Exam

The bottom line – It’s not a popular option for seniors to purchase whole life insurance, but can make sense in certain circumstances. No physical whole life insurance is uncommon for seniors over age 75. HERE

Whole Life Vs Term Life insurance Policies

Term life insurance provides life insurance benefits for a certain amount of time. Suppose you or your spouse passes away at any time during this term (usually 20–30 years). In that case, your beneficiaries (those you’ve selected to inherit your money) will receive a payout from the term life insurance policy.

Find out with our free calculator!

Term life insurance plans are significantly more affordable than whole life insurance. However, term life has no cash value until you or your spouse pass away. In the easiest of terms, it’s not worth anything unless one of you were to die during the duration of the policy. That is when you will be given the money. The hope is you will never have to use your term life insurance policy at all—but if something does happen, at least you know you will take care of your family.

The premiums on whole life insurance are, in most cases, more costly than term life premiums for a few reasons. Whole life protection lasts throughout your entire lifetime. It might sound like something good to have life insurance coverage for your whole life. But the truth is, if you practice some simple principles, you will not have to have life insurance forever because you will have insured yourself. 

Because you will have no debt, an emergency fund, and a sizable amount of money you have invested. Whole life insurance premiums are more because it’s designed to build cash value (which means it tries to double up as an “investment” account.) But remember and keep in mind that a life insurance policy shouldn’t be an investment or money-making scheme—it’s meant to provide security, protection, and peace of mind for your family should the unthinkable happen.

Life insurance has one thing to do, replace your income when you pass away.

There are more productive and profitable ways to invest your money than using your life insurance plan. Which sounds better to you—investing in growth stock mutual funds so you can enjoy your retirement or “investing” money in a program that’s all based on whether or not you die? We think the answer is pretty straightforward.

Term Vs Whole Life insurance Pros And Cons

The most significant difference between the two types of policies is that while both pay a death benefit to your beneficiaries, whole life also provides permanent (lifelong) coverage with a cash value component. That added value – along with the certainty that the insurer will eventually have to pay a death benefit – means that a whole life policy premium is higher than for a term policy.  Others are listed below in the chart. 

Which Is Better Term Life Or Whole Life insurance

Term life insurance is enough for most families who need life insurance, but whole life and other forms of permanent coverage can help in specific cases.

Select term life, if you:

  • You only want to replace your income for a certain length of time, like raising your family or paying the mortgage off.
  • You want the most affordable insurance coverage.
  • Maybe you may want permanent life insurance, but it is unaffordable.
  • Most of the term life policies are convertible to whole life or permanent coverage. The time for conversion varies.
  • Suppose you can invest your money wisely. Cheaper term life lets you invest what you would have paid for a whole life policy.

Select whole life if you:

  • Suppose you want your heirs to have the money to pay the taxes. 
  • Have a dependent, like a child with disabilities. Life insurance can fund a trust to provide care for your child after you’re gone. 
  • Want to spend your retirement savings and still leave an inheritance or money for final expenses, such as funeral costs.
  • Want to equalize inheritances. If you plan to leave a business or property to one child, whole life insurance could compensate your other children.

Term Life insurance Quotes

Term life insurance is often the lowest-priced coverage option, but it is temporary. It is designed to help replace your income if you pass away during your earning years. Your family can use the death benefit to help pay for expenses like housing, childcare and groceries.

Visit our website at Woodysinsurance.com for a free no-obligation quote.

Term Life insurance Calculator

At our website ,Find out with our free calculator, how to calculate your insurance needs.  Here are some quick rules of thumb to calculate your term insurance needs. 

Rule of thumb No. 1: Multiply your income 10

Rule of thumb No. 2: Buy 10 times your income, plus $100,000 per child for college expenses

Rule of thumb No. 3: The DIME formula

This formula encourages you to take a more detailed look at your finances than the other two. DIME stands for debt, income, mortgage and education, four areas that you should account for when calculating your life insurance needs.

  • Debt and final expenses: Add up your debts, other than your mortgage, plus an estimate of your funeral expenses.
  • Income: Decide for how many years your family would need support, and multiply your annual income that number.
  • Mortgage: Calculate the amount you need to pay off your mortgage.
  • Education: Estimate the cost of sending your kids to school and college.
  • By adding all of these obligations together, you get a much more well-rounded view of your needs. 

However, while this formula is more comprehensive, it doesn’t account for the life insurance coverage and savings you already have. It also doesn’t consider the unpaid contributions a stay-at-home parent makes.