Level-Term Life Insurance: Fixed Coverage for Your Peace of Mind

What is level term insurance?

Level term insurance is a type of life insurance policy that provides cover for a specific period. With this type of policy, the amount of cover (the “sum assured”) remains constant throughout the term of the policy. If the policyholder passes away during the term, the insurer pays out a lump sum.

What’s it used for?

It is often used to cover specific financial obligations, such as paying off a mortgage or providing for dependents until they become financially independent. It provides peace of mind by ensuring that loved ones are financially protected if the unexpected happens during the policy term.

Our premiums for level term insurance are cheaper than other comparison sites

Compare providers	Moneyworld	Money Supermarket	Compare the Market	Go Compare	Confused.com
30 year old non-smoker	£5.81	£8.26	£8.10	£9.03	£8.20
30 year old smoker	£10.29	£14.52	£14.52	£15.54	£14.40
2 x 45 year old non-smokers	£35.52	£49.11	£49.11	£53.33	£52.36

Monthly premiums for £250,000 level term insurance over 25 years.
Assumes person is in good health. Correct at 24th April 2024.

Level term insurance FAQs

Our most popular question but there isn’t a simple ‘one size fits all’ approach with level term insurance. It will depend on many factors but here’s a few important points to consider:

Do you have a mortgage and if so, how much is the remaining balance.
Estimate how much money your family would need each year to cover living expenses if you were no longer around. Multiply that by the number of years they would need support.
Subtract your existing savings, investments, and any life insurance you already have from your total expenses. This gives you a clearer picture of how much cover you might need.
Consider whether you should include critical illness cover with your life insurance.
Your budget. Bear in mind, the higher the level of cover, the higher the monthly premium will be.

Just like the cover amount, the ‘term’ of your cover will be dependant on your individual circumstances, such as:

How long is left on your mortgage or any other significant debts
Consider how long your dependents will rely on your income for financial support. If you have young children, you may want cover until they are financially independent.
Assess your long-term financial goals, such as retirement savings or funding your children’s education. You may want cover to last until you’ve reached these milestones.
Your health can impact what cover is available. If you’re in good health you may want to consider taking cover for a longer duration while you’re insurable at favourable rates

No, level term insurance does not have a cash-in value. It is designed solely to provide cover for death or diagnosis of a critical illness (if included).

The cost of level term insurance will vary depending on a number of factors, including:

Age: Generally, the younger you are when you take out cover, the lower your premiums will be. This is because younger people are typically considered lower risk by insurance companies.
Health: Your health and any pre-existing medical conditions can impact the cost of insurance. People in good health typically qualify for ‘standard premiums’, while those with health issues may pay higher rates. The premiums quoted on our website assume you’re in good health, but if you do have a medical condition this shouldn’t stop you applying for a policy. The insurer may increase the price and you can decide if this acceptable.

Bear in mind that our prices are considerably lower than other comparison services and cheaper than buying directly from the provider. This is because we give up the commission normally payable to reduce your premiums.

Yes, critical illness cover can be included. If you choose this, your policy will pay out upon death or diagnosis of a critical illness.

The critical illnesses covered vary from company to company although all providers tend to cover a similar range of conditions. You can find the full list of illnesses covered in the insurance providers key facts, this document is available as you progress with your quote.