Short term life insurance is something that is called level term insurance. Level term insurance is a policy that will provide a consistent coverage from your life insurance policy that will be in force for a specific amount of time.

The amount of the policy is going to stay the same for the entire life of the insurance policy. You are able to choose the term of the level term policy. You can pick your range anywhere from 1 year on up to 30 years.

Level term life insurance will provide you that short term, or temporary, protection and will not build up any cash value. It is a pure risk only policy just as your auto and homeowners insurance is. If the policy doesn’t need to be used the policy will end without payout at the end of the term.

Premium Payments

The level term insurance policy is one that is sold with a guaranteed premium that will not increase over the life of the policy which is important to note as not all life insurance policies are going to have this guarantee and may raise premium during the life of the policy.

The premium is what the insurance company will charge and might increase due to an increasing probability of the insured dying. This is looked at yearly in almost all cases.

Premium Variance

A premium is going to vary on a level term insurance policy based upon circumstances of the applicant and are evaluated on a per policy basis for all applicants. Such factors that will change a premium are:

• Lifestyle choices
• Occupations
• Health conditions

Bad lifestyle choices, chronic health conditions and diseases as well as poor lifestyle choices can either lead to your rejection or a higher premium. There are companies that are going to insure higher risk individuals but you’re going to pay more money.

The level term insurance premium is going to be lower than the other insurance policies as there is not a guarantee that the insurance policy is going to pay out as the large majority of the insured’s are going to live past the policy end date.

Amount of Insurance Needed

The amount of insurance you’re going to need to carry is very subjective based upon your needs; such as:

• Funeral costs
• Overall debts
• Dependent’s needs

If you’re married and have dependents you’ll need to have a higher amount of coverage than if you’re unmarried without any dependents. The general rule of thumb is that the life insurance policy that you purchase should have your policy 6x to 10x your or the insured’s yearly income.

Application Process and Approval

In order to apply for your level term insurance policy all you’ll need to do in most instances is simply complete your application and answer any questions that are put before you. Keep in mind that these are going to be of both a personal and a medical nature. You sometimes might have to have a medical exam.