What Life Insurance Policies Come with Level Premiums?

Life insurance can offer your loved ones added financial protection by paying out a death benefit if you pass away during the policy term. However, maintaining your insurance coverage requires paying premiums, typically monthly or annually. Fortunately, many policies, such as term life insurance and whole life insurance, have level premiums. This means the amount you pay each month or year will stay the same for the duration of the policy term. This article will dive into several types of life insurance policies that come with level premiums, making it easier to find a plan to fit your budget.

1. Whole life insurance

Whole life insurance is a permanent policy, meaning it provides lifelong insurance coverage as long as you keep up with premiums. Your insurer places a portion of each premium into a cash value growth component. This grows tax-deferred at a guaranteed, fixed rate.

When you build enough cash value, you can tap into it by borrowing at low rates with no fixed repayment date or withdrawing from it. You can also receive the cash value minus surrender charges if you surrender the policy. These policies tend to be more costly, but premiums don’t change once you get your policy. The lifelong coverage and cash value component can make the higher premiums worth it.

2.Term life insurance

Term life insurance typically lasts for a fixed duration of 10 to 30 years, depending on your chosen policy term, and there is no cash value component. However, premiums tend to be lower than whole life insurance.

Premiums remain the same until your term life policy expires. If you renew insurance coverage or get a new policy after expiration, they may increase.

3. Credit life insurance

Credit life insurance is designed to help a policyholder pay off outstanding debts if they pass away during the policy term. Lenders may offer it for large loans, such as auto loans and mortgages. These can work well if you get a cosigner for one of these or another qualifying loan, since the cosigner becomes responsible for the loan if you pass away. However, they may also help repay debts without a cosigner to protect your estate from being used to liquidate existing debts.

4. Guaranteed issue life insurance

Guaranteed-issue life insurance is a life insurance policy that guarantees approval for insurance coverage. This policy also has no underwriting questions, making it a good option for people who find medical exams inconvenient or invasive.

Guaranteed issue life insurance tends to have smaller coverage amounts and a one to two-year waiting period. If you pass away during the waiting period, your beneficiaries may receive the premiums you paid as a refund but not the death benefit payout. However, these come with level premiums and tend to be less expensive.

Get life insurance coverage with level premiums

Various policies have level premiums that can help offer predictability when it comes to your budget. However, each suits a different scenario. Whole life insurance and term life insurance each offer enhanced coverage. A whole life policy may work better if you have the budget for lifelong coverage and need an additional savings vehicle. Meanwhile, term life insurance can get you great coverage for your money if you don’t need the policy for life.

Credit and guaranteed-issue life insurance can be suitable for more specific purposes. Credit life insurance can help your loved ones pay off your debts, whereas a guaranteed-issue life policy may allow you to skip the medical exam. Overall, it’s wise to consider your unique situation, dependents, and coverage needs when deciding which type of policy is right for you.

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.

68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.

Final Expense insurance coverage is underwritten by Tier One Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).

This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.

Aflac does not offer Universal or Variable Universal life insurance.

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NY | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211

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