Level Term Life Insurance is designed to pay a lump sum if you die within the specified term. You select the length of cover when you take out the policy.
The term "level" means that the payment will be a set amount which you specify when taking out the policy.
Think about what would happen to the people you leave behind. Will they need a lump sum of money to survive? Will they need to pay off your debts and bills? (Level term assurance can be used to cover interest-only mortgages, but is not normally used for repayment mortgages).
If so, this could be the assurance you need. Level term assurance is the type of assurance that's more applicable to people with children and/or partners.
Compare level term assurance products using comparison charts and possibly a life insurance broker.
The cost of this type of assurance will depend on a number of things, such as the amount you want paid out on death, the number of years (the term) you wish the policy to run for, if you are a smoker (you are classed as a smoker if you have smoked within the last year), if you have what is considered a high-risk occupation, or if you have any pre-existing health conditions or family illnesses.
Ensure you choose a reputable company and make sure your monthly payments are fixed over the term. As this type of assurance offers a guaranteed pay-out on death, as long as you have disclosed all your health problems, you are safe to go for the cheapest policy you can find.
If you are thinking of switching level term assurance policies between providers, remember that any changes in circumstance or new health problems that occurred since you took out the policy will be taken into consideration. Don't ever cancel an existing life insurance that you need before setting up a replacement.
Moneyfacts.co.uk offers a life insurance service which is provided by Active Quote Insurance Services. They can help you find the best life insurance deal. Complete the simple, no-obligation form and they will compare policies from a range of leading insurers to find you a policy that meets your needs.
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Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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