LEVEL PREMIUM

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V Life insurance is taken for longer terms. When the insured
move to the next year they have to pay higher premium as
the risk is increased.
V As the premium increase every year the no of insured left
with the insurer is not the same. This led to the concept of
level premium`
 LEVEL PREMIUM

V The life insurance pricing system that allows the purchaser to pay the
same premium amount each year. (i.e.) charging the same premium
throughout the term.
V The premium paid on this type of policy will be higher at the
beginning of its life but lower towards the end of its life as
compared to term policies that have rising premium rates.
V You will pay more when you are young and in good health, but will
pay less when you are older. You should take this into consideration
when purchasing cheap term life insurance
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V When looking at level-premium insurance, you should carefully
consider the length of coverage best suited to your needs. longer
terms will be more expensive.
V It provides coverage only for a specified duration for 10, 15, 20, and
30 years` And also provide death benefits.
V Insurers determine an average premium based on the length of your
policy as well as your overall health.
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jE F LEVEL PREMIUM
V Level term insurance plans are more cost-effective than other term life
policies. Although premiums for level term policies are initially
higher, the costs will average paid out will be less than other term
plans.
V A person can buy a level term policy with a huge benefit amount and
pay less in premiums than permanent policies such as whole life and
universal life.
V Policy owners may also get a return of their premiums if they
complete the insurer's requirements.
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V Policy owners of level term life insurance can convert their policy
into permanent life insurance. During the conversion period, the
policy will upgrade without any medical re-examinations of the
insured if the benefit amount remains the same.
V Another benefit of receiving level premium life insurance is that you
will be able to easily budget for your premium amount `It will not
change, no matter what changes in your health situation.
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V The level premium is charged with the assumption that the policy
will run its full term.
V In the first year the insurer has marketing and other policy issues
expenses which are spread over the full term.
V If the premium is stopped it is a loss to the Insurer. So the insurer
takes into account the possibility of lapses and their effect while
fixing the premium.