Listen to a Business English Dialogue About Level term insurance
Zoey: Hi Arthur, have you heard about level term insurance?
Arthur: Yes, Zoey, I have. Level term insurance is a type of life insurance policy where the death benefit remains the same throughout the duration of the policy term.
Zoey: That’s correct. Can you explain how level term insurance works in more detail?
Arthur: Sure, Zoey. With level term insurance, the policyholder pays a fixed premium for a specified period, typically 10, 20, or 30 years, and if they pass away during that time, their beneficiaries receive the predetermined death benefit.
Zoey: I see. What are some benefits of having a level term insurance policy?
Arthur: One benefit is that level term insurance provides a straightforward and predictable death benefit, making it easier for policyholders to budget for their insurance needs and for beneficiaries to understand the coverage.
Zoey: That makes sense. Are there any drawbacks or limitations to level term insurance?
Arthur: Yes, Zoey. One limitation is that premiums for level term insurance policies tend to be higher than for other types of life insurance, especially for older individuals or those with pre-existing health conditions.
Zoey: I understand. How do policyholders decide on the duration of the level term insurance policy?
Arthur: Policyholders typically consider factors such as their financial obligations, such as mortgage payments or children’s education expenses, and their expected income during the policy term when choosing the duration of the policy.
Zoey: Thanks for explaining, Arthur. Level term insurance seems like a valuable option for individuals looking for straightforward and predictable life insurance coverage.
Arthur: Absolutely, Zoey. It’s a popular choice for many people seeking to protect their loved ones financially in the event of their passing.