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Level Term Life Insurance

With benefits that stay the same throughout your policy, level term life insurance can offer dependable protection when you need it most.

What is level term life insurance?

Level term life insurance is a type of term life insurance policy that covers you for a specific period of time. The “level” part refers to your coverage amount, which stays the same the entire time you own the policy. This means if you buy a 20-year level term policy with $250,000 in coverage, your beneficiaries will get paid the same amount whether you die in the third or thirteenth year of your policy, provided you’ve kept up with your premium payments. 

Most level term life insurance policies also have level premiums, or payments. So your cost for life insurance stays the same each month — or year if you choose to pay annually — which can make budgeting easier.  

Level term life insurance is a simple, affordable way to make sure your family has a financial cushion when it counts. That’s why it’s a great choice for busy families: no hassles, no changes to track, just peace of mind that you’re covered.

Benefits of level term life insurance policies

Level term insurance is a flexible, cost-effective way to protect your family when they need it. Some of the biggest reasons people choose level term life insurance include:

  • Affordable coverage

    Affordable coverage

  • Flexible policy terms

    Flexible policy terms

  • Reliable monthly payments

    Reliable monthly payments

  • Customizable coverage

    Customizable coverage

Who needs a level term life insurance policy?

Level term is often the best fit for people who need affordable coverage during a certain time in their life. Most term policies are level term, which is a popular choice for many families.

Whether you’re buying a house or starting a family, there are certain points in life where you need some extra financial protection. If you have people depending on you financially, you probably need life insurance. A life insurance policy can help you provide a cash cushion for your family if the unexpected happens. 

Wondering which type of life insurance is best for you? Here are a few clues that level term life insurance might be the right fit for you. 

  • Your financial responsibilities have a deadline. Term life coverage can last up to 30 years, so it’s best if you need coverage for a specific period of time, like while your kids are growing up or you’re paying down a mortgage. Term life is usually less expensive than permanent coverage, partly because it eventually expires. If you don’t need life insurance coverage forever, term life insurance can provide protection when it matters for much less than permanent life insurance.
  • You want an easy-to-understand policy. It doesn’t get much simpler than level term life insurance. The coverage amount and premiums stay the same throughout the entire policy. If you die during the term, the beneficiaries get a payout for that amount. Plus, if you want to customize your policy, you can add riders to your agreement for extra features and you’ll have the option to change your coverage amount. For many people, that’s all they need – and one reason why level term life insurance is so attractive.
  • You want affordable protection. Term life insurance is generally one of the most cost-effective ways to cover your family. If your family is on a budget, you can find policies in a variety of coverage amounts and term lengths to fit your needs. You can also pay a little to potentially get a lot with term life insurance. For a relatively small payment each month, your family can tap into hundreds of thousands or even millions of dollars if needed.
  • You’re younger than 70. If you’re in the prime of your life, term life insurance is often a good bet. Term life insurance can cover you during your working years or while you’re raising your children. Many companies offer term life insurance up to age 70, although you may have fewer options for term lengths or coverage amounts in your 50s or 60s. If you’re older and looking for coverage to cover funeral expenses or other end-of-life needs, a policy like final expense insurance might be a better choice.

How much does level term life insurance cost?

Level term life insurance is typically one of the most affordable forms of protection available. A healthy 30-year-old woman can buy a $250,000, 10-year level term policy, starting around $15 per month. That’s less than a Netflix subscription, but with benefits that potentially last for decades. 

There are several factors that impact the price you will pay for coverage, including:

  • Age. The younger you are, the lower your premiums will be. For example, that same $250,000 10-year policy is $24 per month for a 45-year-old woman, so you can save hundreds over the life of the policy by buying sooner. Buying now also lets you lock in coverage while you’re healthy. If you develop a health condition later in life, it could push your prices higher or prevent you from getting covered at all.
  • Health and other personal factors. The healthier you are, the more likely you are to get competitive level term life insurance rates. Life insurance companies also look at other factors, like your occupation, your lifestyle, your driving record, and your finances, to assess your overall risk as a customer and set your rates.
  • Coverage amount. The coverage amount refers to the size of the payout your family receives if you die while it’s active. Your life insurance company provides a lump sum of cash your beneficiaries can use for whatever they wish, including covering day-to-day expenses, replacing income, paying the mortgage, covering credit card bills or other debts, or even paying for funeral expenses. The more coverage you buy, the higher the cost will be.
  • Term length. The term length refers to how long you hold the policy, typically anywhere from 10 to 30 years. The longer the policy term, the more your premium will be.
  • Add-on features. Some term life policies let you add riders for additional coverage. These add-on features can increase the cost of your policy, in some cases.

Remember that every insurance company prices life insurance policies differently, so some might give you a better rate than others. eFinancial can help you shop and compare multiple plans to find the one that works best for you.

How does level term life insurance work?

Wondering what’s involved in buying and owning a level term life policy? Here’s what you need to know.


When you choose a level term life insurance policy, you’ll pick a term length that ranges from 10 to 30 years. That’s the length of time your policy will be active, so it’s important to make sure your coverage lasts long enough to cover big financial responsibilities like raising children or paying off a mortgage.

You’ll also choose a coverage amount, which can range from $50,000 to $1 million or more. You should base your coverage amount on current and future financial needs: mortgage payments, paying for dependents, educational costs, and final expenses. Use our calculator to crunch numbers to find the ideal amount of coverage.

Level term is a popular type of life insurance, so plenty of companies offer options to meet your needs. You can often choose to add features that will meet specific needs, too, like renewable term benefits that allow you to extend the policy once the original term ends. eFinancial can help you compare level term policy rates online and provide personalized guidance to find the right choice.

Apply and Buy

Once you select your level term policy, eFinancial makes it easy to apply over the phone, with same-day approvals in some cases. Keep in mind that you may need to take a medical exam to be approved – we have all the facts on taking a medical exam.

After you buy your policy, make regular payments to keep your policy active. With a level term life insurance policy, your monthly premium, or payment, will remain the same during the life of the policy. This can make long-term planning for payments much easier, since you always know what you’ll owe.

Get Peace of Mind

With level term, you’ll enjoy consistent coverage throughout the policy. If you die while the policy is active, your loved ones will receive a tax-free cash payment, with no strings attached.

If you live past the term of your policy, you have options. You may be able to renew your policy, convert to permanent life insurance, buy another policy, or simply let your coverage expire if you don’t need it anymore.

Alternatives to level term life insurance

Permanent life insurance

Permanent life insurance lasts your whole life, so your beneficiaries get a payout no matter when you die as long as you keep up with premiums. Permanent life insurance also builds cash value, a kind of savings account you can access while you’re living. These features make permanent life insurance much more expensive than term life insurance.

If your goal is income replacement, level term insurance is the way to go. If you have lifelong needs or want a policy that provides financial resources during your lifetime, then permanent life insurance might be a good fit. Talk to an agent about different types of permanent insurance, including whole and universal.

Other types of term life insurance

Level term life insurance is by far the most common type of life insurance, but there are other forms available for special situations. If you think one of these might work better for you, talk to an agent about your options:

  • Decreasing term. With decreasing term insurance, your premium stays the same throughout the policy, but the cash payout your family would receive declines over time. For example, a level term life policy with a $100,000 payout would pay $100,000 at any point during the term, but a $100,000 decreasing term policy might go down by 5% each year. If you died five years in, the family gets $75,000. With premiums that are generally lower than other term life policies, decreasing term might be a good fit for those who need insurance coverage for a specific debt, such as a mortgage.
  • Increasing term. Increasing term life insurance gradually increases the benefit your family would receive throughout your policy. For example, a level term policy with a $100,000 payout would pay $100,000 at any point during the term, but a $100,000 increasing term policy might go up by 5% each year. If you died five years in, the family gets $125,000. If you’re planning to make major life changes over the years, like having children or buying a home, increasing term life insurance can make sure you’re covered as your needs grow.

Level term life insurance through eFinancial

At eFinancial, we’re dedicated to helping you choose the best level term insurance plan for you and your family. We offer high-quality, affordable products from over 20 top life insurance companies, and our agents are here to help you find the right plan for your needs.

Once you choose a policy, we’ll guide you through each step of the approval process, and we’re always here to answer questions about your coverage. We look forward to helping you.

You’ve got level term life insurance questions. We’ve gotanswers.

Wondering if level term life insurance is right for you? Here are some answers to our most common questions:

Want more information about level term life insurance quotes?

We’re here to help. eFinancial works with top-rated life insurance companies to help you find the right coverage for you and your family. Call us or start your quote online today.

Get your quote online, or talk to one of our agents at 800-957-9525.