There are two main types of life insurance: level term life insurance and decreasing term life insurance.
Level Term Life Insurance is designed to pay out a fixed sum upon your death to your family. Over the term of the policy (for example, 20 years) it will pay out a particular sum (for example, £150,000) upon your death. It is, of course, an insurance policy that you hope will not have to pay out.
The insurance is designed to make your dependent’s life easier should the worst happen to you. There is little point in having level term life insurance if you have no dependents. If paying the bills and maintaining a reasonable lifestyle would be difficult for your dependents on your demise, then it’s worth having some cover for peace of mind.
It should be remembered that there is never any cash-in value for level term life insurance. If you survive the term, there will be no payout, and if you stop the cover during the policy, there is no redemption value.
Technically, it is an ‘assurance’ policy, and not an ‘insurance’ policy. This is because insurance cover a risk where something might happen. Assurance covers certainties, and, of course, death and taxes are unavoidable!
Level term insurance should not be confused with decreasing term life insurance.
Our team can provide you with a range of quotes depending upon your requirements, so you can then make the right decision.