Level Term Life Insurance UK
What is Level Term Life Insurance in the UK?
Your loved ones will get a predetermined lump sum payout from level term life insurance upon your passing (sum assured).
This shows that the sum assured maintains its value during the life insurance policy’s term. No matter how long your level term life insurance policy has been in force, your loved ones will receive the same sum when you die away.
Therefore, level term life insurance in the UK is your greatest bet for protecting your loved ones’ main expenses. For a specific period of time (often up to a maximum of 40 years), you will be covered by life insurance, and if you die away within that period, a payout will be issued.
If the level term expires before your passing, the life insurance coverage ceases and there will be no payout.
Why not use an FCA-regulated broker service like Life Expert to compare level term life insurance in the UK? You can get free quotes from our panel of insurers with our advised, cost-free service. Get level term life insurance from Life Expert today in the UK.
- Affordable monthly premiums.
- Provide loved ones with a fixed payout.
- Pay out amount up to £1,000,000.
- Term length up to 40 years.
Why Secure Level Term Life Insurance in the UK Through Life Expert?
- Life Expert helps you get free quotes from our panel of insurers for level term life insurance in the UK.
- Life Expert helps you get level term life insurance in the UK with other policy types (such as decreasing term life insurance and whole of life insurance) ensuring you secure the cover that meets your needs and is tailored to your personal circumstsnces.
- We can help put your policy in Trust.
- Our advised service is FCA-regulated and rated ‘Excellent’ on Trustpilot.
How Does Level Term Life Insurance in the UK Work?
FAMILIES PROTECTED
A level term life insurance policy offers protection for a set period of time, which is often up to a term of 40 years.
The amount promised won’t alter for the whole term of the level term life insurance policy. In contrast to decreasing term life insurance policies, where the sum assured gets smaller over time, this one doesn’t.
If you pass away within the time frame specified by your life insurance policy, your loved ones may submit a claim and get a payout.
Level Term Life Insurance in the UK can help cover:
- Mortgage or rental payments – Average mortgage debt in the UK stands at £137,934[1]
- Day-to-day family living costs – In the UK households spend £2,548 a month on average[2]
- Outstanding debts in your name – Average total debt per UK household stands £60,935[3]
- The cost of your funeral – Average cost of a basic funeral is now £4,056[4]
- Provide an inheritance – To spend as they wish
Please note, if you outlive the policy term, cover will simply expire and no pay out will be issued.
Level Term or Decreasing Term Life Insurance?
When taking out term life insurance you’ll typically have two options:
- Level term life insurance
- Decreasing term life insurance
While both policies provide cover for a specified period of time and will only pay out if you pass away during the policy term, there are some key differences to be aware of.
But, what’s the difference between level term and decreasing term life insurance?…
Level Term Life Insurance in the UK
- Provides cover for a specified period of time.
- Sum assured remains fixed throughout the policy lifetime.
- Ideal for covering large expenses, such as an interest-only mortgage, future family living costs or an inheritance.
Decreasing Term Life Insurance in the UK
- Provides cover for a specified period of time.
- Sum assured reduces over the policy lifetime.
- Ideal for covering a repayment mortgage or debts that decrease over time as your sum assured can reduce in line with payments.
Ultimately, the best policy for you will depend on your personal circumstances. Why not speak to an expert from Life Expert who can provide you with all the information you need.
Life Expert offer an advised service where we will help you figure out what you should and can be covered for, how much cover you should have and we will help explain the options that are available for you.
How Much Level Term Life Insurance Do I Need & How Much Does it Cost?
How much level term life insurance you need will depend on what you want to protect.
When determining how much life insurance you need, you’ll need to consider how much your loved ones will need to cover all essential expenses when you’re no longer around.
For example: family living costs + remaining mortgage balance + funeral costs + inheritance = sum assured. By adding these expenses together, you can establish how much life insurance cover you’re likely to require.
Alternatively, you can use the handy life insurance calculator that Life Expert provide. To find the most suitable level term life insurance policy, that meets all your needs and is tailored to your specific circumstances, get your free life insurance quote from Life Expert.
The exact cost of level term life insurance will depend on your personal circumstances.
When applying for level term life insurance in the UK, insurers will take key information into consideration when calculating your monthly life insurance premiums.
Information required during the level term application process includes:
- Age
- Smoking status
- Medical history
- BMI
- Length of cover
- Sum assured
As the sum assured remains fixed throughout the policy term, premiums tend to be more expensive than with decreasing term life insurance (where your risk to the insurer reduces).
However, it’s still possible to secure affordable level term life insurance.
Level Term Life Insurance with Critical Illness Cover
Critical Illness Cover can be added to a level term life insurance policy. If you’re diagnosed with a serious illness, level term life insurance with critical illness coverage lets you file a claim right away.
Critical illness insurance typically covers a list of 30 ailments, including heart attack, stroke, and several types of cancer. According to the insurer, this can be more or less extensive.
If you are unable to work, the money from your critical illness insurance can be used to make up for missed income. You can therefore keep living the way you already do, or you can pay for private medical care.
Some carriers offer the option to purchase critical illness insurance as a stand-alone policy.