In health insurance, a premium which remains unchanged throughout the life of a policy.
Insurance Encyclopedia
Level premium annuity
Type of deferred annuity in which the annuitant pays equal premium amounts, monthly or annually, until the date that benefit payments begin.
Level premium billing
Allows the insured to pay a specific amount of premium on each due date during the policy year that is based on an estimated annual premium. An adjustment is made at the end of the policy year for coverage changes that occurred during that year.
Level premium insurance
Life insurance for which the cost is evenly distributed over the period during which premiums are paid. Premiums are the same from year to year. Protection in the earlier years is more than the actual cost, building up a reserve, and in the later years, less than the actual cost.
Level premium insurance (Life Insurance)
A form of insurance under which the premium does not change throughout the term of the policy. Generally, the majority of life insurance policies are paid in this manner.
Level premium system/level annual premium system
Life insurance premiums are the same amount each year and do not increase as age increases. The premiums charged in the early years are more than sufficient to cover the mortality risk and so contribute to a reserve. In later years the reserve is used at a time when the level annual premium is insufficient to cover the mortality risk.
Level premium whole life insurance
Type of whole life insurance policy in which equal premiums are paid throughout the premium payment period.
Level premiums
Annual premium payments that are the same each year that the life insurance policy is in force.
Level schedule
Group insurance plan in which all policyholders are insured for the same amount of benefits without regard to wages or job position.
level term insurance
Type of term insurance that gives a death benefit that remains the same during a specified period. Premiums usually remain the same throughout each term of coverage.