How Does Level Term Life Insurance Work? 
How does level term insurance work ? Level term works in the same way that cash value permanent insurance works . Level term overcharges for pure insurance rates early on to undercharge for those same rates later . The excess money collected is invested and later is applied internally to combine with the premium to cover the true cost of insurance . The difference is with cash values the excess gain is returned as cash values to permanent policy holders rather than the insurance company . 