Level term life insurance

Are you confused about level term life insurance? Not sure if it's right for you?

As with all types of life insurance, its primary purpose is to help towards protecting your loved ones financially in the event of your death, allowing them to pay off debts and look to the future without the burden of mounting bills and financial worries.

However, there are key differences between level term life insurance and other kinds of life insurance policies, which will determine if it is the right type of policy for you.

In this guide, we'll explain these differences, as well as answer some of the common questions about level term life insurance.

What is level term life insurance?

Level term life insurance is a type of life insurance policy where an agreed sum is paid out should you die during the chosen period/policy term.

What is the difference between level term and decreasing term life insurance?

As the name 'level term' suggests, the amount of cover provided by a level term life insurance policy will not change throughout the term.

If you are looking for a policy specifically to cover your repayment mortgage, you might be more interested in a decreasing term policy, also known as mortgage protection life insurance. With these policies the amount of cover decreases broadly in line with a repayment mortgage during the term of the policy.

How does level term life insurance work?

The term of a level term life insurance policy is chosen by you at the outset and the intention of the product is simple: should you die within this specified term; the selected level of cover will be paid out.

It is always important to read the key features of any policy carefully before you buy. You must answer all questions accurately and honestly when completing any application as failure to do so could mean a future claim could is declined.

You can find out more about life insurance on our 'what is life insurance' page.

Level Term Life Insurance
Who is level term insurance suitable for?

Who is level term life insurance suitable for?

There are several reasons you may wish to take out level term life insurance. For example, if you have debts that would need to be paid off in the event of your death, if you don't think your dependants would be able to cope financially if you died or to provide money for events that you wish to happen after your death, such as your children's schooling. This could also include financial support for your children's futures, for example house purchase deposits.

If you have a mortgage and would like your dependants to be able to pay off the outstanding capital if you died, level term insurance may be suitable. Many people in such circumstances will also consider mortgage protection life insurance (which is also often referred to as decreasing term life insurance).

These are only examples and every case is different. Whatever your reasons for taking out level term life insurance, make sure the cover is sufficient for your needs. Once your policy is in place, you should regularly review your needs to ensure that it's still providing you with a suitable level of cover.

How much level term life insurance cover do I need?

The amount of cover (the figure that would be paid out in the event of a claim) you'll need will depend on your individual circumstances. As mentioned above, from mortgage debt to childcare, there are a range of expenses that you may wish to cover. To help, you may wish to use our life insurance cover calculator by pressing the button below.

How can I calculate how much life insurance cover I need?

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What happens when term life insurance ends?

There is no cash-in value with this type of cover and if no claim is made before the end of the term, the policy will cease and nothing will be paid out. If at any time during the term of the policy a claim is made, then the policy will cease.

Where can I compare level term life insurance quotes?

To compare level term life insurance quotes, you can use the Compare Cover comparison tool and select 'Level Cover' under 'what type of cover do you need?'. You can then view and compare quotes in one simple search. If you're ready compare life insurance quotes now.


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