Advantages of Level term life insurance

The longer the term, the higher the premium will become. This is because the longer into someone's life the policy goes the higher risk they become and this increases the price paid out on the policy. Also, the chance of someone dying during a one year policy is extremely low, so the price for these policies is significantly less. The chance of a death during a thirty year policy is much higher, and the price will reflect that. Obviously there are a number of factors to consider when choosing which length of cover to choose.
Many people choose to take out level term life insurance in order to cover themselves financially against a large financial burden. This could be anything from a mortgage to a loan for a car. If someone takes on a mortgage and expects to pay it off in fifteen years then they may will to take out a level term life insurance for the same amount of time. This is to ensure that if they died during this time, their loved ones would not have to take on the responsibility of trying to pay it off.
One of the problems with level term life insurance as opposed to full life insurance is that when it comes to renewal time the price may be significantly different than the current price. In some cases it may no longer be possible to take out a renewal at all. For example, if you became terminally ill during your fixed term, the insurer may need you to provide proof of insurability. If you are unable to do so as they see you as a high risk then you will not get a renewal.
Some providers do include an automatic renewal feature in their policies which determine that you can apply for a renewal without the need to provide proof of insurability. This is something that you will need to check before entering into a contract. Most policies also come with the option to convert to whole life insurance if this situation arises.
The main reason that the cost of level term life insurance is substantially cheaper than whole life insurance is that in the case of the term insurance it is not a certainty that the insurer will have to pay out. This makes the insurance accessible to many that would not be able to commit to the whole life insurance payment options. Statistics for payouts on level term life insurance policies is around 1% currently.
Some premiums start from as little as $5 per month, and this coverage guarantees a fixed payout amount if you die within the term length provided that the ongoing monthly payments are kept up to date.