What is a level term insurance policy?
Most term policies are actually level term, which means your premiums and death benefit stay the same for the entire length of the term. By contrast, with a yearly renewable term policy, your premiums can go up every year.
What is level term used for?
Generally, when term life insurance expires, the policy simply expires, and no action needs to be taken by the policyholder. A notice is sent by the insurance carrier that the policy is no longer in effect, the policyholder stops paying the premiums, and there is no longer any potential death benefit.
What happens at the end of a level term life insurance policy?
A 30-year term life insurance policy consists of three simple guarantees. Your insurance coverage will remain in force for 30 years as long as you pay your premiums. Your periodic premiums can never be increased by the company. The death benefit is guaranteed for the entire 30-year term.