Level-Premium Insurance

Definition

• A term insurance policy where the premiums are guaranteed to stay the same for a set period of time. The premiums paid in a level-premium insurance policy will be higher at the start when compared to those paid in a rising premium policy, but by the end of the contract, the level-premium policy will generally have lower premiums.

Synonyms
fixed-premium insurance, level premium insurance, fixed insurance payments

Related Terms and Acronyms

• Conversion Privilege — Definition,
  • An option where an insurance company is required to update, renew or convert an insurance policy with level premiums at the end of the policy's term without a medical exam.
• Decreasing Term Life Insurance — Definition,
  • A Term life insurance policy with benefits that decrease each year as the policyholder ages.
• Fixed Annuity — Definition,
  • An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
• Fixed Instalment — Definition,
  • Periodic (usually monthly) payment on a loan whose sum does not vary.
• Fixed Premium — Definition,
  • Insurance or annuity premiums that stay level for a specific period of time.
• Fixed Rate Mortgage (FRM) — Acronym, Very Important,
  • A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
• Flat Fee — Definition,
  • A fixed charge that a broker requests instead of a commission.
• Health Insurance (HI) — Acronym,
  • Insurance that covers the costs of medical expenses for insured persons.
• Level Payment — Definition,
  • A method of repayment where periodical payments of principal and interest are made in a certain way so the payment amount remains constant.
• Life Insurance — Definition, Very Important,
  • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
  ➥ CanEquity offers life insurance.
• Pre-paid Insurance — Definition,
  • A insurance policy where insurance premiums are all paid in advance, normally offered in one year terms.
• Re-entry — Definition,
  • The option to renew coverage at the end of a term, generally with level premiums.
• Variable Rate — Definition,
  • A floating percentage value that fluctuates based on certain conditions.