LEVEL TERM LIFE INSURANCE

Why Level term life insurance?

Cover for a specified period (the term)

Pay out (sum assured) up to £1,000,000

Provide loved ones with a fixed lump sum pay out

Term length up to 40 years

affordable premiums from 20p-a-day

Level term life insurance is a form of life insurance that provides your loved ones with a fixed lump sum pay out if you pass away during the policy term.

Unlike decreasing term life insurance, the pay out sum maintains its value throughout the policy term.

So, regardless of how far into the policy you pass away, your loved ones will always receive the same amount.

For this reason, level term life insurance is ideal for helping to protect large expenses for your loved ones.

If you don’t pass away during the set term, cover will expire and no pay out will be made to your loved ones.

What is a level term life insurance policy?

level term life insurance policy offers cover for a set period (the term) and provides a fixed pay out if your pass away during the term.

It’s important to be aware that if you outlive the policy term, no pay out will be issued and your loved ones won’t be able to make a claim on your passing after the policy has expired.

A friendly member of our team can provide you with all the information you need to know about level term life insurance to help you make a fully informed decision.

Get your Level term life insurance quote

How much level term life insurance do I need?

When trying to figure out, how much level term life insurance you need, you’ll need to consider how much your loved ones would need to help cover essential costs when you’re no longer around.

essentially a level term life insurance could help pays out for:

Cover rental or mortgage payments

Cover outstanding debt in your name

Fund day-to-day family living costs

Cover the cost of your funeral

Provide an inheritance

By adding together your key expenses, you can estimate how much you’ll need for your sum assured.

For example:

Family living costs + Remaining mortgage balance + Funeral costs = Sum assured

How much is level term life insurance?

Level term life insurance can be as cheap as £5 per month through Mortgage Generator.

However, the exact price you pay for level term life insurance will depend on your personal circumstances.

When applying for cover, insurers will take key information into consideration when calculating your monthly life insurance premium.

The information requirted for the applicaiton is:

Age
Health & Welbeing
BMI
Smoking or Vaping Status
Lifestyle (occupation, hobbies, alcohol consumption etc...)
Policy type
Length of cover
Sum assured

As the sum assured remains fixed throughout the policy term, premiums tend to be more expensive than decreasing term life insurance (where your risk to the insurer reduces).

However, level term life insurance is still one of the most affordable forms of cover.

Can I buy level term life insurance online?

Yes, you can now buy level term life insurance online through Mortgage Generator.

Buying life insurance online allows you to browse multiple quotes at your own leisure and you can go through the application as slow or as quickly as you’d like.

If you know that level term life insurance is right for you and you know how much cover you require, securing a policy online could be an ideal choice.

Can I get level term life insurance with critical illness cover?

Yes, it’s possible to add critical illness cover to a level term life insurance policy for an additional cost.

When added to a life insurance policy, critical illness cover can allow you to make a claim if you’re diagnosed with a serious (but not life-threatening) illness or your loved ones can claim if you pass away.

If you’re unable to work as a result of your condition, the funds from critical illness cover could help to replace lost income and/or cover private medical treatment.

Typically, there’s a list of 30 illnesses covered within critical illness cover, including heart attack, stroke and some forms of cancer.

However, this can be more or less comprehensive depending on the insurer.

Can I get joint level term life insurance?

Yes, level term life insurance can be purchased as a joint policy.

With a joint level term life insurance policy, two lives will be covered under one policy.

This means there’s only one application form to fill in and one premium to pay between you both. However, there will also only be one fixed lump sum payment (usually paid upon the first death) if one person passes away during the policy term.

Once this pay out has been issued the policy will expire and the surviving policyholder will need to secure new cover.

While it can be more expensive, securing two separate level term life insurance policies can provide two separate pay outs (providing a more comprehensive solution)

Can I write level term life insurance in trust?

Yes, level term life insurance can be written in trust.

Writing your life insurance in trust is a process that can detach the value of your policy from your estate.

The funds from your life insurance policy will be managed by a trustee (of your choosing) after your passing who will ensure they are distributed as per your wishes.

Can I get level term life insurance with no medical?

Yes, it’s possible to secure level term life insurance without having to undergo a medical exam.

It’s uncommon for insurers to request a medical exam. However, you’ll be required to answer medical questions during the application.

A medical exam is typically only requested so insurers can get a better understanding of your health (for example, if you have a pre-existing medical condition).

Even in this circumstance, it’s more common for insurers to obtain a medical report from your GP (this can only be done with your consent).

If a medical exam is requested, it will be arranged and paid by the insurer.

Read our full no medical life insurance page for more information.

Is level term life insurance an option for seniors?

Yes, level term life insurance could still be an affordable option for those in their senior years. However, this will depend on your personal circumstances.

Many seniors opt for an over 50s plan where acceptance is guaranteed to those aged 50 - 85 (with no medical information or exam required) and a pay out is guaranteed.

However, the sum assured is typically much lower than with standard cover and premiums can be inflated due to the unknown risk to the insurer.

Therefore, if you’re still in good health, a level term life insurance policy could allow you to secure a cheaper premium and larger cover amount.

We can help you find suitable senior life insurance to meet your needs. Simply get in touch to discuss your options.