Level Term Life Insurance

Any Term coverage that keeps the Face Value and the Premiums unchanged from its coming into force till its expiry are called Level Term Life Insurance. This is much more common than Annual Renewable Term Insurance.

Terms that commonly are availed are 10, 20, and 30 years. Same premium is paid annually although the longer the term, the premium is higher. The insurer balances this by making adjustment of time value of money and taking the average cost of the annual renewal rates over the term. That is why you get a flat rate of premium even for Longer Term Life Insurance