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 level term insurance work?

In the event of your death, level 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 level term life insurance 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 level term life policy is in place, then you won’t receive a payout. So, if you want the security of life insurance, you’ll have to take out a new level term insurance policy but due to your increased age, it’s likely that your premium will be more expensive.

What does level term life insurance cover?

In the event of your death, level cover life insurance pays out a lump sum of money to your loved ones. This money can be used to help your dependents cover any financial commitments that you leave behind, including:

  • Mortgage repayments
  • Household bills
  • Tuition fees
  • Loans

How much level term insurance cover do I need?

The amount of level life insurance cover you need will vary depending on your personal circumstances. To work out how much cover you want in your level term insurance policy, you should consider the following:

  • How much money you want to leave your loved ones
  • How much money you still owe on your mortgage (if you have one)
  • Any future costs such as credit card payments and funeral costs

Compare level term life insurance

When comparing level term life insurance policies, you might be tempted to pick the cheapest policy you can find. At Compare by Review, we know that cheap level term life insurance isn’t always the best level term life insurance. That’s why we encourage you to take a look at reviews before you purchase a policy. When it comes to life insurance, your loved ones will have to handle the claim in the event of your death so it’s important to pick an insurer that will look after your dependents and guide them through the process. You don’t want them to be left in the wrong hands.

Long term life insurance pros & cons

Pros

  • 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

Cons

  • 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

Compare life insurance providers on Compare by Review today. We’re the first and only comparison site that ranks life insurance providers exclusively on customer experience and product quality rather than price. Our full table of providers will give you an impartial and unbiased overview so you can purchase life insurance from a high-quality provider that you can rely on when you need them most.

Beagle Street

Ranked 1 of 10

Life Insurance providers

Beagle Street

LV=

Ranked 2 of 10

Life Insurance providers

LV=

Royal London

Ranked 3 of 10

Life Insurance providers

Royal London