Level Premium
Updated: 13 November 2024
What Does Level Premium Mean?
A level premium policy is a life insurance policy with a fixed premium rate that remains constant for the entire duration of the policy. This contrasts with other types of life insurance policies, where premiums increase over time.
Insuranceopedia Explains Level Premium
Life insurance policyholders typically pay higher premiums as they age, due to increased health risks that make them a higher financial risk for insurers.
Policyholders who choose level premium insurance initially pay higher premiums than they would with a standard term life insurance policy. However, because the premium rate remains constant, they ultimately pay a lower rate over time compared to those with increasing-premium policies.
Related Definitions
Related Terms
Related Articles
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Future Trends in Pain Management Billing and Insurance: Adapting to Change
Understanding EPO Health Insurance Plans
Leasing Vs Buying A Car: Which Is Better?
From the Experts: Top Tips for Saving Money on Your Insurance
CLUE Yourself In: How Your Claims History Informs Your Insurance Future
Related Reading
Do You Need an MRTA Policy?
A Guide To Disability Benefit Riders
Disability Insurance
What Is Seniors Life Insurance?
What Are Annuities?
What Is Burial Insurance?
