What is Level Term Insurance?

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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 insurance plans in detail. But before that lets understand what the term plan is?

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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 insurance is offered by most banks and other financial institutions.

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 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.

Advantages Offered by Level Term 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 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 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 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.

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Oct 21, 2022
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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.

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