{"ok":true,"canonical_url":"https://dealroom.so/glossary/level-term-policy","api_url":"https://dealroom.so/api/public/glossary/level-term-policy","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"level-term-policy","term":"Level term policy","group":"The loan itself","definition":"A type of life insurance policy where the death benefit and premium remain the same throughout the policy term. It provides predictable coverage.","what_it_means":"Lenders often require a life insurance policy assigned to them to cover the outstanding loan balance in case of the buyer's death. A level term policy is frequently used because its death benefit doesn't decrease, ensuring the loan is fully covered for a set period.","url":"https://dealroom.so/glossary/level-term-policy","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"assignment-of-policy-form","term":"Assignment of Policy Form","url":"https://dealroom.so/glossary/assignment-of-policy-form"},{"slug":"beneficiary","term":"Beneficiary","url":"https://dealroom.so/glossary/beneficiary"}],"related_questions":[{"question":"Can a term life insurance policy be used for the collateral assignment requirement on an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-term-life-insurance-policy-be-used-for-the-collateral-assignment-requirement-on-an-s"},{"question":"Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-decreasing-term-life-insurance-policy-acceptable-for-the-sba-s-life-insurance-require"},{"question":"Can a term life insurance policy be used for the required collateral assignment on key principals for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-term-life-insurance-policy-be-used-for-the-required-collateral-assignment-on-key-pri"},{"question":"Can a business engaged in multi-level marketing (MLM) be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-business-engaged-in-multi-level-marketing-mlm-be-eligible-for-a-7-a-loan"},{"question":"What level of environmental due diligence is required for leasehold improvements only, without real estate acquisition?","url":"https://dealroom.so/for-lenders/questions/what-level-of-environmental-due-diligence-is-required-for-leasehold-improvements-only-with"},{"question":"What level of debt service coverage ratio (DSCR) does an SBA 7(a) lender typically look for?","url":"https://dealroom.so/sba-7a/questions/what-level-of-debt-service-coverage-ratio-dscr-does-an-sba-7-a-lender-typically-look-for"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Level term policy","url":"https://dealroom.so/glossary/level-term-policy","source_type":"DealRoom Data"}}