What's Level Term Insurance?

Level term insurance is one of the most popular types of life insurance that offers you protection in the event of your demise within the term of the policy. The amount paid as premium as well as the sum assured does not change over the course of the policy term, unlike decreasing term insurance.

The cost of premiums for level term insurance varies from person to person, and the price quoted relies on the person's well-being, age, and occupation. Similarly, as with all insurance policies, it's vital you keep up the premium payments to keep the policy cover in place.

If you're considering purchasing this insurance, you should know what is level term insurance:

  1. It’s a policy for a fixed number of years

  2. A guaranteed sum assured is paid on the policyholder's death during the term of the policy

  3. If the policy expires and the life assured is still alive, no payment is made

Level term insurance benefits:

  1. Life cover for family protection

  2. Life cover for mortgage repayment

  3. Can be obtained with or without critical illness protection

Example of level term life insurance:

  1. Suppose Ajay, purchases a level term insurance cover of Rs. 1 crore for a fixed term of 30 years

  2. If he passes away during this term period and his nominees make a valid claim, the payout of Rs. 1 crore will be made

  3. However, if he passes away after 30 years, his cover will end, and there will be no payment made