Level Term Life Insurance

As we’ve briefly mentioned in the previous post, level term life insurance pays out a set amount of money to your dependants, if you die during the term of the policy. Here, we’ll be taking a closer look at this most comprehensive form of life insurance cover.

Benefits

In the unfortunate event of your death, level term life insurance will help your remaining family members cover the costs of mortgage payments. This is the most common purpose for which people take out this form of life insurance. Setting the term of the insurance policy the same as the mortgage will guarantee that the policy is enough to cover your mortgage. One of the biggest benefits of this is that the later the insurance is paid out in the term, the lesser the amount of the mortgage to be repaid. Thus, your family will be left with a paid off mortgage and cash to spare. Although mortgage repayment is a major purpose of this form of cover, the policy’s cash can be used to pay off other debts. Or, you may simply want to leave your family with lump sum, to spend how they will.

Costs

The cost of life insurance depends largely on medical factors and lifestyle choices. Medical factors include any illnesses you may have or may have the propensity to develop. Thus, familial medical history also comes into play, when insurers are calculating your risk for life insurance. Asthma and heart problems top the lists, when it comes to what insurers are looking for here. Lifestyle choices include habits that affect your health. As you’re probably aware, cigarette smoking habits and alcohol consumption will both dramatically increase the cost of life insurance premiums. Dangerous high-risk hobbies, such as sky diving, and high-risk occupations will also drive up the cost of your life insurance.