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Level Term Life Insurance Advice

Level term life insurance is a straightforward type of life cover that provides peace of mind to individuals and their families. Read on to learn more about level term life insurance and contact our experienced life insurance advisers for personalised support comparing life insurance.

What is level term life insurance?

Level term life insurance is a type of life insurance that pays out a fixed lump sum to the deceased’s beneficiaries within a fixed time period. Extras can sometimes be added to this type of life cover, such as terminal illness and critical illness cover.

This type of life insurance is different from increasing term life cover or decreasing term life cover. The former accounts for inflation, so the amount paid out rises over time. The latter is a policy that pays more to beneficiaries if you die in the earlier stages of the policy than if you died in later life.

What are the advantages of level term life insurance policy?

The advantage of level term life insurance is that you know exactly the amount of money your beneficiaries will receive at any point of the policy term. Individuals can search for level term life cover that ensures their family will be financially secure with the fixed amount.

What are the disadvantages?

The main disadvantage of level term life cover is that the policy does not account for rising inflation. Beneficiaries are paid a fixed lump sum that is agreed upon when the policy is taken out and does not increase over time. Thus, the money from a later payout might not stretch as far as hoped due to inflation.

Things to consider

The main consideration when taking out level term life insurance is how much your beneficiaries will require to be financially secure. This may involve calculating existing family debts or a mortgage. You’ll also need to consider the term of the life cover and how long you wish for it to last. A professional insurance adviser can discuss many other considerations with you.

Is level life insurance right for me?

Level life insurance provides a clear policy with peace of mind, making it preferable for lots of people. However, the way your personal finances and family debts are structured may mean another type of life insurance policy is more advantageous. The only way to know for certain what cover is best is to complete in-depth research and calculations – or engage with a specialist life cover adviser.

Why use an adviser to help consider level term life insurance?

An adviser will discuss your personal circumstances and preferences to determine if this really is the best type of life insurance policy for you and your family. If so, they will search the market for suitable policies within budget and present you with clear information to make an informed and sensible decision. This could save you time, worry and may even secure you lower repayments.

Reach out to one of our Moneysprite life insurance advisers to discuss your level term insurance options. We have advisers from Birmingham down to Cornwall, and back across to Bournemouth, London and the South East, and help clients throughout the UK. Our friendly and patient team are here to assist you.

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