Level Death Benefit

If we work in a dangerous industry or watch a lot of murder mystery shows, we probably have a passing familiarity with how basic life insurance policies work: a policy is taken out on someone, and if that someone dies, the beneficiary receives the amount dictated by the policy. There are many different kinds of life insurance policies...some will only pay if the person plotzes on the job, while others will only pay if the death is accidental or illness-related. And some include what is known as a “level death benefit,” which means that the amount paid out will be the same no matter how new or old the policy is.

So if we take out a $200,000 life insurance policy on our husband, we’ll get $200,000 when he passes, regardless of whether that happens tomorrow...or fifty years from now.