Level Term Assurance

Level term life insurance policies allow individuals to determine the length of the policy (the term) and the amount that is ‘paid-out’ to their beneficiaries (the sum insured).

This sum remains the same during the term no matter what point it is claimed at. Because both the premiums and the sum insured are fixed – your payments won’t increase with inflation, however neither will the sum insured amount.

How does Level Term Assurance work?

One of the simplest types of life insurance available – a level term policy covers the holder for a number of years and pays out the agreed lump sum to their beneficiaries if the policy holder passes away during the agreed term.

If the holder is still alive when the policy expires no payment will be made and they will need to take out a new policy to provide further life insurance cover.

No matter how far you are into your policy, the same agreed lump sum will be paid out to your dependents upon your passing. The money is completely tax free and can be a great comfort to the policy holder and loved ones, knowing that some of the financial burden is taken care of.

Depending on the individual circumstances the lump sum pay-out can help loved ones cover the cost of funeral expenses, mortgage payments, household bills, school fees and any outstanding debt or loans to help maintain their standard of living.

How much does Level Term Assurance Cost?

The price depends on a number of factors including your age, health, occupation and both the desired term length and sum insured amount of the policy.

As with any other type of insurance it is crucial that policy holders keep up with all premium payments to ensure cover is kept in place.

The amount of cover required needs to take into account any mortgage payments, outstanding loans or debt and allow sufficient means for dependents to maintain a suitable standard of living. For couples with children it is important to consider the financial impact if one spouse was to pass away. Would the main earner need to cease working? How much would appropriate childcare costs be? These are all important questions that need to be considered.

Find out if Level Term Assurance is right for you

If you’re interested to learn more about level term assurance, call – 01245 408 602 today to speak to one of the friendly advisors here at Opul Life. Our team of experts can offer impartial, financial advice and explain everything to you in a way that is clear and simple to understand.