The reason why level term costs less is that it is only designed to provide
coverage at a fixed price for a temporary period of time say..
Decreasing term life insurance provides
coverage at a fixed price but the insurance amount decreases over life of the policy.
Not exact matches
At least, that's the gist of ongoing media
coverage out of the South American nation: bribery, kickbacks, and
price -
fixing among the country's corporations, governments, and political parties.
With level term life insurance, the insurance company agrees to provide guaranteed
coverage (death benefit)
at a
fixed price (guaranteed premium) for a certain period of time (level term).
Guaranteed issue life insurance is unique in that the premium rate stays the same
at a
fixed «unit
price,» but the
coverage amount differs:
Property Damage Liability — this kind of
coverage covers the
price of
fixing any property damage that the «
at fault» party causes with their vehicle in an injury.
The life insurance company agrees to provide guaranteed
coverage (death benefit)
at a
fixed price (guaranteed premium) for a certain period of time (level term).
There are usually higher premiums under a whole life insurance policy because of the extent of its
coverage, and these premiums are generally set
at a
fixed price.