What is level term life insurance?


5 min read

Updated on Feb 23, 2023

If you want the premium options and death benefit of a term plan to remain steady throughout the tenure of the policy, you should opt for a level term policy. Let’s find out more about it in this post.

If you are searching for a life insurance policy, you may have noted that there is no dearth of plans and options in the market. With several existing as well as new and emerging insurance companies, the market is flooded with endless options such as term plans, ULIPS, ROP, money-back plans etc. Despite the variety available, term insurance plans still feature as the most popular and cost effective life insurance policy that people generally opt for. In this post let us understand the scope of level term life insurance plans in detail. But before that lets understand what the term plan is?

Visual Stories by PayBima

About Term life Insurance Plan

Term insurance plans are pure protection plans, wherein the policy offers death benefit to the beneficiary of the plan in the unfortunate event of the demise of the policy holder during the term of the policy. ‘Term of the policy’ is the specific time period or tenure of term plans. Thus, term plans offer complete protection with no risk involved in terms of the money invested.

If the person insured under a term plan dies during the term of the policy, the beneficiaries mentioned in the plan are provided with the sum assured known as death benefit. However, generally term plans do not offer any maturity or survival benefit to the insured at end of the term if the policyholder outlives the plan. So, on surviving the plan the insured may not get any survival bonus or sum assured as maturity under most term plans. And since these term plans do not offer any survival benefit to the insured, they are so reasonably priced as compared to other plans. Hence, these plans are easily affordable and within the reach of most people.

What is a Level Term Life Insurance Policy?

Level term insurance plans are the standard type of term life insurance under which the premium of the plan paid by the insured as well as the death benefit received by the nominee in case of demise of the policyholder remains the same throughout the entire duration of the policy.  Here, the premium is fixed by the insurer looking at the liabilities and the requirements of the insured.  The Level term life insurance is offered by most banks and other financial institutions.

Best Term Life Insurance Companies

Why should I buy a level term life insurance?

Level term life insurance are highly beneficial plans that allow the nominee of the insured to avail a lump sum amount which can be used by the dependants to meet any monetary obligations.  It can also be used by the loved ones of the insured to carry on their regular expenses, educational costs, other payments and so on. Many level term plans also feature rider facility for critical illness, which enhance the coverage amount.

Unlike other life insurance policies, which are available with vast options and coverage making it difficult to comprehend, the level term life insurance plans are protection based and easy to understand policies. The best term insurance plans are safe and are perfect to secure the financial future of your family. Since the premium of these plans are reasonable, they do not make a hole in your wallet as well.

Further, these plans have no hidden charges and suit everyone alike offering them total security and peace of mind.

Family Health Insurance from PayBima

Advantages Offered by Level Term Life Insurance Plans

  1. Conventional and direct – The level term life insurance policy is a standard plan which is easy to comprehend. The insured under this plan already know the amount of death benefit that his/her nominee will receive in case there is an unfortunate demise of the policyholder. Further, the insured is also aware of the premium to be paid for the entire duration of the term as there are no changes being made.
  2. No hole in the pocket – Being a term plan, the premium of the level term life insurance is pocket friendly and can be easily afforded by anyone. Thus, the insured can smoothly manage the budget of everything along with running the term plan accordingly
  3. Stable plans – This is a stable plan as the coverage remains same and the premiums are already fixed at the time of the policy purchase
  4. Health benefit – The insured can also avail the benefit of good health under this plan. This way, he/she can avail higher coverage for level term life insurance of more than 15, 25 or 30 years as per the plan they choose.
  5. Annual renewal option – The policy is available with a long tenure and can be renewed on yearly basis.

Read More: Know about Term Insurance Riders: How Do They Work?

To Sum Up

Level term life insurance policy is a reasonably priced term insurance plan that is commonly preferred by most people to secure their families. This policy serves as a great help at such a junction in life when you lose the head earning member of the family due to any unfortunate incident. This policy comes with no hidden charges and suits everyone.

Further, under this policy you do not have to worry about changing premium rates as the level term life insurance rates remain fixed for the entire duration of the policy. So, if you are planning to buy a level term plan, you may check the level term life insurance vs. term life insurance differences online to know the details to make your decision easy.

Comparing policies is very important before making the final purchase as it allows the buyer to understand the different features being offered under different policies and make appropriate decisions.

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

Also, check out the PayBima’s Guide and Glossary section –


View this post on Instagram


A post shared by paybima (@paybima)

FAQs on Level Term life Insurance

What is level term life insurance?

Level term life insurance is a type of life insurance policy that provides a fixed amount of coverage for a set period of time, typically 10, 20, or 30 years. The premiums and coverage amount remain the same throughout the term of the policy.

How does level term life insurance differ from other types of life insurance?

Level term life insurance differs from other types of life insurance in several ways. Unlike whole life insurance, which provides coverage for your entire life, level term life insurance only provides coverage for a set period of time. Additionally, the premiums for level term life insurance are typically lower than those for whole life insurance, which makes it a more affordable option for many people.

What are the benefits of level term life insurance?

The main benefit of level term life insurance is that it provides a fixed amount of coverage for a set period of time at a fixed premium. This makes it easier to budget for and plan for the future. Additionally, level term life insurance can provide financial security for your loved ones in the event of your death.

How much coverage do I need?

The amount of coverage you need will depend on your individual circumstances. Factors to consider include your income, debts, and the needs of your dependents. A good rule of thumb is to have coverage that is at least 10 times your annual income.

How do I purchase level term life insurance?

You can purchase level term life insurance from a variety of sources, including insurance agents, online brokers, and financial advisors. It is important to shop around and compare policies from different providers to ensure that you get the best coverage at the best price.

Other Term Insurance Products

Oct 21, 2022
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back