Level Term insurance is where the value of the insurance cover remains constant for the entire duration of the policy.
Level Term life insurance is the most popular form of life insurance.
The word "Level" means that the value of the insurance cover remains the same throught the duration of the policy. (There is another form call Decreasing Term Life Insurance where this is not the case - here the value of the cover progressively reduces as the policy progesses.)
The word "Term"
signifies that the policy remains in force for a pre-agreed period of time, it's term. Life insurance policies can be taken out by anyone aged 18 or over - although in practice it is very difficult, and very expensive, to obtain over the age of 65.
Level term life insurance is primarily taken out for protecting the family's finances in the event of the death of a income provider. It is also commonly used in conjunction with an Interest Only Mortgage to ensure that if the policyholder died, the capital outstanding from the mortgage lender, will be repaid in full.
life insurance
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