Level Life Insurance pays out a lump sum if you die during the policy term. The benefit remains fixed over the life of the policy, so should a claim arise the amount paid out is the same whether it is in the first year of cover or the last.
- It is particularly suited to covering an interest-only mortgage, where the outstanding mortgage balance doesn’t fall over time.
- It’s also useful for providing family protection, as the sum paid out is the same across the policy term.
- Opt to include Critical Illness Insurance to provide a cash lump sum should you suffer a serious illness, such as cancer.
How Does Level Life Insurance Work?
Level Life Insurance offers a fixed term policy that will guarantee a set lump sum tax free pay out when you die.
For example, if you were to take out a policy for 25 years with a sum assured of £100,000 and kept up to date with your premiums, your loved ones would receive the full lump sum of £100,000 if you died during that term regardless of when you passed away.
Level Life Insurance will pay out on the death of the insured individual.
Most policies now include Terminal Illness Cover, which allows the benefit to be paid out early if you’re diagnosed with fewer than 12 months to live.
Critical Illness Insurance is an optional add-on to the policy for an additional premium. It extends the scope of the cover to include a payout for serious illnesses also – the most common claims are for cancer, heart attacks and strokes.