Level Premium Term (LPT) Life Explained

A level premium term life insurance plan lets you stick to your budget while you help protect your family.  Unlike some stepped rate plans that increases every year with your age, this type of term plan offers rates that stay the same for the period you choose, even as you get older or your health changes. 

That means you can choose the term that lasts only as long as your financial obligation, enjoying consistent, steady rates for only as long as you need the coverage. 

LPT coverage might make sense for you should the worst happen and you have:
  • A mortgage: If you have a 20-year home mortgage, then you may want to purchase a 20-year term policy so your family can help pay off the mortgage and remain in their home if something happens to you. 
  • Education payments: You may want to add a 10-year term life policy to help you pay for your child’s education or your student loans. 
  • Loans: If your spouse or partner would be burdened paying off the balance of any outstanding loans you may have, you may need a term life policy to help pay these bills. 

Level Premium Term or Stepped Rate Plan: Which is right for you?
Whether you choose a stepped rate plan or a level premium term plan is largely based on your individual situation, how much you can afford, and how long you want to be covered. For example, if you don’t have a "time-based" financial obligation such as a mortgage or child care, a plan offering stepped rates, with lower upfront costs and rates that increase as you age, could be more suitable for you. 

Learn More
AICPA members have access to a suite of Life Insurance Plans built with financial professionals’ needs in mind. Learn more about the life insurance options available to you as an AICPA member.

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695) (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493), Aon Direct Insurance Administrators, and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency. The Plan Agent of the AICPA Insurance Trust, Aon Insurance Services, is not affiliated with Prudential.

Group Insurance coverage is issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. 

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