Fidelity Life: How Much Does Level Term Life Insurance Cost?

Some people who haven't yet purchased life insurance may fail to do so because they think it's too expensive. And while the protection and peace of mind offered by a great policy are priceless, a term life insurance policy is actually quite affordable. Here's what buyers need to know when shopping for a level term life insurance policy.

What Is Level Term Life Insurance?

Term life insurance is a broad category of life insurance that offers death benefit payouts over a specified number of years (commonly 10, 15, 20, or 30 years). These policies tend to be simple and affordable life insurance options. 

A level term life insurance policy is a specific type of term life insurance that has the benefits of consistent premiums and death benefits throughout the policy's term. That's in contrast to a policy that may have a decreasing death benefit as the term goes on.

Level term life policies are typically among the most affordable types of policies. That's partly because the premium payments are the same for the entire term, making it easy to budget for life insurance. They're also less expensive since, unlike whole life insurance, there is no cash value component. This means that at the end of the term, premium payments stop, and the death benefit ceases.

Benefits of Level Term Life Insurance

There are several benefits of a level term life insurance policy, including:

• Simplicity: Level term life insurance is often a simple policy without many fees and complexities. The application process also tends to be relatively straightforward and can be done entirely online with certain companies.
• Low cost: These policies tend to be very affordable and predictable. Since the policies are temporary and expire at the end of the term, they're less risky for insurers than a whole life policy covering the insured for life.
• Ability to plan for changing needs: For those who anticipate future life changes, like children leaving home, they may only need the policy to cover for a certain amount of time. Once the term expires, the insured can choose to apply for a new policy, renew the existing one, convert to a whole life policy, or simply go without coverage.

How Much Does Level Term Life Insurance Cost?

While the premiums and death benefits may be level, the cost of a policy will vary among applicants. And several factors influence the cost of a level term life insurance policy, including:

• Age: Since younger people tend to be healthier and have a longer lifespan ahead of them, it's generally less expensive to get a policy during someone's 20s or 30s. The older someone is, the more expensive they may be to insure as they're naturally at a higher risk of passing away during the policy's term.
• Gender: Women typically pay less for coverage than men since the female lifespan is generally longer. But simply being female doesn't always mean the policy will be less expensive than a male of similar age and health.
• Health: Many life insurance companies require a medical exam before approving coverage. But some companies that operate online may be able to use existing medical records instead of an in-person exam. Those with better measurements for common health markers like blood pressure and heart rate may receive a lower quote than peers with unfavorable measurements.

It's wise to use cost comparison tools available online to check price estimates before purchasing a policy. 

The Bottom Line

Term life insurance is an affordable insurance option. And using a reputable company like Fidelity Life can help lock in the right coverage at the most favorable rates. When in doubt, look to a financial advisor or life insurance company for expert advice. Doing so can give peace of mind to the insured that their family will be financially protected if something happens to them.

For all media inquiries, contact: 

Laura Zimmerman, Chief Marketing Officer

laura.zimmerman@fidelitylife.com, (312) 288-0068