Level Term Life Insurance

What is level term life insurance?

Level term life insurance, or level term assurance is a type of life insurance that pays out a lump sum of cash if you pass away. The amount your loved ones are paid stays the same whether you’re near the start of your policy or near the end, unlike decreasing term life insurance.

How does it work?

In the event of your death, level term life insurance gives your loved ones a payout if you die while the policy is in place. The word ‘term’ refers to how many years the policy lasts, for example, it could be 35 years. The best policies have a long term. The payout amount varies depending on the insurance provider so make sure you shop around to find the best policy for you. If you don’t die whilst your policy is in place, then you won’t receive a payout from. So, if you want the security of life insurance, you’ll have to take out a new policy but due to your increased age, it’s likely that your premium will be more expensive.

What are the pros and cons of level term life insurance?


  • Ensures your loved ones get a fixed amount of money if you were to pass away
  • Your premium stays the same throughout the length of the policy
  • Your payout is the same whether you die at the beginning or end of your policy


  • Premiums are often higher than other types of life insurance policies
  • If you outlive the policy length, you’ll no longer be covered when you die and if you take out a new policy, it will cost more due to your increased age

Compare life insurance providers

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