What Does Level Refer To In Level Term Insurance?

Level term insurance is a type of term life insurance that offers a fixed benefit payout for a fixed “level” premium throughout the entire length of the policy term. In contrast, renewable term policies require a renewal and increased premium periodically, usually every five years. A level term life policy offers a predetermined amount of coverage for a specific amount of time that expires at a predetermined end date. Most people buy level term policies to cover long periods of time, giving them the comfort of knowing they will have coverage for that entire time regardless of changes that may occur to their health or insurability.

Death benefits in a level term life policy do not change, whereas decreasing term insurance offers a death benefit that decreases over the policy’s life. Level term policies offer a straightforward safety net that can be customized by the length of the term, the premiums, and coverage amounts. The amount of coverage you need will depend on your individual situation and goals.

Here is a comparison table between level term insurance and renewable term insurance:

Term Insurance TypeBenefit PayoutPremiumsTerm LengthRenewal
Level Term InsuranceFixedFixedPredeterminedNo renewal needed
Renewable Term InsuranceVariesIncreases periodicallyUsually 5 years or lessNeeds renewal with increased premiums

If you’re an active servicemember, veteran, or military spouse, and you’re not sure about your future financial stability, AAFMAA offers affordable military level term policies that can address your needs. AAFMAA works to understand and support your unique financial goals at every stage of life, tailoring our service to your unique situation. Get a free quote online or over the phone with one of our military life insurance experts at 877-398-2263 and learn more about your life insurance options today.

Burial Insurance Rates
We Sell Burial Insurance
  Cash Payout On Death
  Cash Value (Savings) While Living
...Without The Hassle
 NO Waiting Period
  NO Medical Exam
  NO Expiration
 NO Rate Increases