by Guest » Fri Feb 10, 2006 10:11 am
After going through an article focussing on level term policies and guaranteed premium rates, I had an idea that although it is regarded as a 20-year level premium term policy, the premiums are not assured. Can anyone resolve this complicated issue for me?
Posted: Mon Feb 13, 2006 04:34 am Post Subject: level term policy
There are two types of policies, namely the guaranteed premium 20 year level term policy and the 20 year level term policy. The guaranteed premium twenty year level term policy makes the premiums guaranteed to remain flat for the entire 20 years time. But for the non-guaranteed premium twenty-year level term policy, the premiums are subject to remain flat for a considerable period of time following which they might vary. More likely the partial guarantee can sustain for about 5 to 10 years. Only the insurance company has the authority to raise the premiums if necessary. Consult your agent or broker regarding the quote (for which you are being considered) prior to any discussion regarding the term life insurance benefits that you might achieve.
Posted: Mon Feb 13, 2006 06:03 am Post Subject: 20 years level terms
20 years level terms does not mean an actual term worth 20 years, rather it indicates the level terms for 20 years. The policy purchased gives us a hint whether it might offer a guaranteed price for each term or a maximum guaranteed price for each term.
Posted: Mon Feb 13, 2006 07:37 am Post Subject: level term policy
I see no good reason as to why people should go for a policy that is not guaranteed, save the reasons of cost and affordability, which enhances the chance that the insurance carrier will not increase the premiums. Hence, there should not be any other reason than the price factor, which might cause a difference of opinions.
Posted: Sat Jan 05, 2008 08:42 pm Post Subject:
In 2003, almost all (97%) of the term life insurance bought was Level Term Life Insurance (Source: Insurance Information Institute).
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