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Level term insurance is very popular since the death benefit remains the same for the duration of the contract. A mortgage insurance policy (not very popular any more) has a reducing death benefit that is often tied to the outstanding mortgage.
Guaranteed level term insurance guarantees that the death benefit and premium will not increase during a specific period of time.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
How does level term insurance work? Level term works in the same way that cash value permanent insurance works. Level term overcharges for pure insurance rates early on to undercharge for those same rates later. The excess money collected is invested and later is applied internally to combine with the premium to cover the true cost of insurance. The difference is with cash values the excess gain is returned as cash values to permanent policy holders rather than the insurance company.
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Guaranteed level term insurance guarantees that the death benefit and premium will not increase during a specific period of time.