The main characteristic of level term life insurance is that it has the same amount payable at death, the death benefit, throughout the entire policy period. Level term life insurance also has level premiums, meaning the premiums you pay will not change during the policy period. For example, a 20 year level term life insurance policy will have a guaranteed death benefit amount and a guaranteed premium amount for the entire 20 year duration of the of the policy. After the 20 year period has expired, the policy may lapse without any further coverage or continue under one of several options.
Level term life insurance may be continued for annual consecutive terms after the initial policy period has ended by paying the yearly renewable term life insurance premium found in the policy schedule. Most level term life insurance policies allow you to renew coverage to age 95 and some go as high as age 100.
Another way level term life insurance may be continued past the expiration of the initial term policy period is by elected to convert to a permanent life insurance policy.
Level term life insurance is identified has having:
•Guaranteed Premiums
•Guaranteed Death Benefit
•Renewable Life Insurance
•Convertible Life Insurance