Level term life insurance also commonly known as term assurance is a basic form of life insurance. Level term insurance pays out a tax-free fixed lump sum to your family upon diagnosis of a terminal illness or death. The amount of cover a level term life insurance policy provides remains constant throughout the life of the policy.
What can level term life insurance be used for?
The level term life insurance sum paid to your loved ones can be used to replace lost income, covering monthly financial obligations such as mortgage/rent, credit card or loan payments as well as everyday necessities. The amount of the level term life insurance payout received will depend on the amount of cover you wish to take out at the start of the policy.
Do I need level term life insurance?
What would be the financial impact on your family if you were to pass away? Would your partner have enough earnings and savings to pay for the necessities and loan repayments? If not, then level term life assurance could be an effective way to protect their future.
Factors to consider when buying level term life insurance?
- What tax-free sum would your family require from the level term life assurance policy should the worst happen?
- How long do think you will need the level term life insurance policy to last?
- Would you like the life cover premiums to be fixed over the term of the policy?
- Would you like your level term life policy cover to increase in line with inflation?
- Have you considered including critical illness cover. A critical illness policy would help protect you financially should you be diagnosed with a critical illness.
As insurance brokers dealing in insurance day in, day out we are in a great position to help. If you require some life insurance advice or term insurance quotes then let us know.
For more general information and the regulation of life insurance see the Financial Services Authority site.
