Level Premium Insurance

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Definition: Level Premium Insurance



Full Definition of Level Premium Insurance


Level premium insurance is a type of life insurance policy with premiums that remain the same throughout the life of the level premium insurance policy. Level premium insurance shouldn’t be confused with level term insurance, which refers to insurance with a benefit that remains the same throughout the term. Most whole life insurance policies are level premium insurance policies; some term life insurance policies are also level premium insurance policies (also known as guaranteed rate policies). One advantage of level premium insurance is the security it provides a policyholder who can gauge the policy’s affordability throughout its term, knowing that the premiums will not increase. Though the premiums on a level premium insurance policy will be higher than the actual cost of the policy during the first years of the level premium insurance policy, they will be lower than the actual cost during the later years (the purpose of a level premium insurance policy is to level out the cost of the policy across time).


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https://payrollheaven.com/define/level-premium-insurance/
Modern Language Association (MLA):
Level Premium Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 12, 2020 https://payrollheaven.com/define/level-premium-insurance/.
Chicago Manual of Style (CMS):
Level Premium Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/level-premium-insurance/ (accessed: July 12, 2020).
American Psychological Association (APA):
Level Premium Insurance. PayrollHeaven.com. Retrieved July 12, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/level-premium-insurance/

Definition Sources


Definitions for Level Premium Insurance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February, 2020 | 0 Views.