Life Insurance was created to help families going through a tough time. It is terrible to think about but what would happen to your family if you were to pass away in the next couple of years?
How would they be able to stay afloat financially?
This is where life insurance coverage can help. Life Insurance can have you covered just a period or your entire life so you do not have to worry about such a thing.
Term life insurance will cover you for a specific term of your life typically 10 – 30 years so you can pay off your debts and become self-sufficient.
There are different kinds of term life policies, the most common type of term policy is the level premium term life policy.
What Is A Level Premium Rider?
A level premium rider makes the premium payment stay consistent or “level” for the entire life of the policy which is typically 10 – 30 years
A level premium term life policy does not have all of the extras like lifetime coverage, cash value, or return of premiums.
A level premium term life policy comes equipped with a death benefit and that is it.
If the policyholder dies during the specified term than death benefit is paid in a tax free lump sum to the beneficiaries.
If the policyholder outlives the policy than they stop making payments at the end of the term and are no longer covered.
The level premium policy is the most common policy for companies to offer because of the advantages to the policyholder and the company.
Pros And Cons Of The Level Premium Rider
Level Premium Insurance is very simple, there are no gimmicks in this policy. It is the most common policy for a reason because you know exactly what you are paying for.
The payments stay consistent for the entire life of the policy whether that is 10 or 30 years it does not change.
As long as the policyholder makes these payments in a timely manner they will receive the death benefit.
Due to the fact that Level Premium Policies are the most common among life insurance companies it also makes them the most affordable.
It is extremely easy to find great rates because there are so many different companies to choose from.
3. Death Benefit
This coverage provides a death benefit that will ensure your family is financially stable if you were to pass away during the specified term.
The death benefit can pay for any debt a family may have such as student loans, car loans, or a mortgage.
4. Peace Of Mind
Knowing your family is covered if you were to die can help policyholders sleep at night. It is a terrible thing to think about but something that people should be prepared for.
This coverage is great but it is only for a limited amount of time. The term this insurance policy is only for 10-30 years. Once the policy ends you no longer have to make payments but you no longer are covered if something were to happen.
At the end of the term, you do have the option to convert the term policy to a permanent policy or renew for another specified term.
A permanent policy can be much more expensive than a level premium policy. Renewing a term policy can be affordable but will increase your payments as you will have to undergo another medical exam.
2. No Investment Option
Although it does make this policy more affordable not having an investment option can be viewed as a disadvantage.
Policyholders will not receive any compensation once the policy comes to an end. Other policies like permanent or return of premium policies have a cash value option which can put money in your pocket at the end of the policy.
Who Is The Level Premium Rider Best For?
This type of life insurance policy is perfect for someone who is looking for an affordable policy with a death benefit to keep their family financially stable if something were to happen.
Level premium policies are best for people who only need coverage for a limited amount of time.
The length of the term you choose is dependent on your financial needs.
If your family is young and you will need coverage for a longer amount of time than a 30 year team can be beneficial for you.
If your kids are in college and you do not have a lot of debt than a shorter term that is 10-15 years is perfect.
Level Premium Insurance is a great option for a secondary form of coverage. Many people have benefits through their work that gives them life insurance coverage.
For many people, the amount the coverage is for is not enough and they need a second policy to ensure their family is financially stable.
This is where level premium insurance comes into play, it is extremely affordable but can be the difference your family needs to get through a difficult time.
Best Life Insurance Companies for the Level Premium Rider
Here are some of the best insurance companies for level premium insurance.
These rates are for a non-smoking 30 year old man who is 5 feet 9 inches tall and in good health.
The policy is for $500,000 and is for a 20 year term.
|Insurance Provider||Monthly Premium|
|Lincoln Financial Group||$28.44|
Each of these policies is extremely affordable.
Protective, offering the cheapest policy will only cost the policyholder $4,800 over the course of the 20 year term but will receive $500,000 if he dies before the term is up.
The most expensive is Prudential which will cost $7,980 over the 20 year term but he will receive the same death benefit of $500,000.
Level Premium Insurance provides the protection your family needs for a price your family can afford.
Get a quote to see how cheap you can be covered with level premium insurance today!