Our Level Term Life Insurance offers guaranteed premiums and a fixed death benefit, ensuring your loved ones have the financial security they deserve, no matter what the future holds.
What is level term life insurance?
Level term life insurance is a type of policy where premiums stay the same throughout the term, making it easier to manage your budget. It provides a fixed amount of coverage for a specific period, typically ranging from 10 to 30 years. This policy ensures that if something happens to you within the term, your beneficiaries receive the full death benefit, offering them comfort and financial stability when they need it most.
Benefits of Level Term Life Insurance
- Predictability: Lock in your premium rates with no surprises. What you pay today is what you’ll pay for the entire term of your policy.
- Simplicity: With straightforward coverage and terms, it’s easy to understand what you’re buying and how it works.
- Affordability: Typically more affordable than whole life policies, level term insurance allows you to obtain higher coverage amounts at a lower cost.
What are the drawbacks of level term life insurance?
Although level term life insurance has its benefits, it’s not a one-size-fits-all solution. Some potential drawbacks to consider are:
- Temporary Coverage: Level term insurance provides protection for a predetermined period. If you don’t make a claim before the policy expires, you won’t receive a payout.
- No Cash Value: Unlike whole life policies, level term insurance does not accumulate any cash value. This means you cannot borrow against the policy or receive any capital if the policy is not claimed during the term.
- Renewal Rates: Renewing or purchasing new term insurance later in life can be significantly more expensive, especially as health issues arise.
- Limited Flexibility: Once your policy is in place, the terms cannot be changed. If your financial situation changes, you may find yourself underinsured or overpaying.
How much life insurance coverage do I need?
Choosing the right amount of life insurance coverage depends on your personal and financial circumstances. Consider factors like your current income, debts, future obligations, and daily living expenses.
A general rule of thumb is to aim for coverage that’s 5 to 10 times your annual income. However, it’s crucial to evaluate your specific situation—think about what it would take to secure your family’s financial future if you were no longer there to provide for them.
The easiest way to determine how much coverage you need is to use our life insurance calculator. It’s fast, free, and the only information you need is your annual income.
Other types of term life insurance
If level term life insurance doesn’t seem like the right fit for you, but you like the idea of temporary coverage, there are two other types of term life insurance policies you should consider.
Level Term or Decreasing Life Insurance: A Guide
Decreasing life insurance policies have a death benefit that gradually reduces throughout the term. As you pay down your liabilities—like your mortgage—the potential payout decreases. As the potential payout decreases, so do your premium costs, making it a budget-friendly choice for short-term financial protection.
Level Term vs Increasing Life Insurance: A Guide
Increasing life insurance policies offer a death benefit that grows over time, providing additional security as your financial needs evolve. This policy is particularly useful if you anticipate your responsibilities and financial obligations to increase, such as raising a family or planning for retirement. This ensures that your coverage keeps pace with inflation and your changing lifestyle.
How much does level term life insurance cost?
The biggest factors that determine the cost of a level term policy are:
- Age: The younger you are when you purchase the policy, the lower your premiums typically are because you’re considered to be lower risk.
- Health: Good health can lead to lower premiums. Insurers often require a medical exam to assess your health status and any pre-existing conditions.
- Smoking Status: Non-smokers generally pay less for life insurance compared to smokers because of the higher health risks associated with smoking.
- Term Length: Longer terms usually mean higher premiums because they cover more years of potential risk.
- Coverage Amount: The larger the death benefit, the higher the premium, as the insurer assumes a greater risk.
- Lifestyle: High-risk activities or occupations can increase premiums due to increased risk of injury or death.
AmFi Insurance Offerings
Term Life | Universal Life | |
|---|---|---|
Our term life insurance policy is designed to provide coverage for a specific period of time, from 5 to 20 years. All claims are handled promptly, with a guarantee of being processed within three days. If you're between the ages of 20 and 50 and in good health, our Term Life policy is tailored to meet your needs. | Our universal life insurance policy pays a death benefit. Unlike our term life insurance, which only covers you for a set period, universal life policies provide a broader range of benefits. Universal life insurance also offers more financial benefits, like tax-free cash value accumulation at guaranteed interest rates. | |
How Long Does It Last? | You can choose between 5, 10, or 20 years of coverage with a guaranteed payout. | A permanent life insurance policy offers coverage for the duration of your life, as long as premiums are paid. |
What Can It Cover? | Term life insurance replaces your lost income during crucial moments like raising children or paying off the mortgage. | In addition to a death benefit, it provides additional financial benefits, such as a tax-free cash accumulation |
How Much Does It Cost? | Our plans begin for as low as $9/month. | Our plans are unique based on your needs, though more expensive than a term policy, but flexible payment options |
Who Should Get It? | Our Term Life policy is only available for those in good health between the ages of 20-50 | Our universal life policies require medical exams that will help determine your eligibility and premiums. |
Level Term Life Insurance FAQs
Should I get level term life insurance?
Deciding whether to get level term life insurance depends on your personal and financial circumstances. It’s ideal if you’re looking for affordable, simple coverage to protect your family during critical years, like while paying off a mortgage or raising children. Evaluate your financial obligations and family responsibilities to determine if level term life insurance meets your needs.
What happens when the term ends?
When a level term life insurance policy ends, the coverage expires. You no longer have life insurance protection and won’t make any more payments. At that point, you can choose to renew the policy, possibly at higher rates due to increased age and changes in health status, convert it to a permanent policy, or purchase a new policy that fits your current needs.
How can I save on level term insurance?
To save on level term life insurance, buy a policy when you’re younger and healthier, align the term length with your needs, and compare quotes from multiple insurers. Some insurers may also provide discounts if you pay your annual premium in full rather than monthly installments.
Why compare life insurance options at AmFi Life?
AmFi Life offers a variety of plans that suit diverse needs and budgets. We are committed to transparency and helping you find the best policy for your circumstances. Our friendly, experienced advisors are here to support you every step of the way.
What happens if you outlive term life insurance?
If you outlive your term life insurance policy, the coverage expires, and you won’t receive a payout. However, you have options: you can renew the policy at potentially higher rates, convert it into a permanent life insurance policy if your terms permit, or purchase a new policy. If this happens, you should reassess your life insurance needs to secure coverage that fits your current circumstances.
Ready to secure your family’s future? Get a free, personalized level term life insurance quote from AmFi today!
