Level Term Life Insurance

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.

Death

Level Life Insurance will pay out on the death of the insured individual.

Terminal Illness

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

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.

Do I Need Level Life Insurance?

The two most common uses for a Level Term Assurance policy are to protect an interest-only mortgage or to provide family protection.

However, it may also be used to protect a repayment mortgage. The longer the policy is in force, the larger the payout over and above the mortgage sum would be, providing an element of family protection as well.

If you have loved ones you’d like to protect or a mortgage you’re looking to cover, Level Term Life Assurance could be one option to meet those needs.

What’s the Risk of Passing Away?

Based on the Life Expectancy Calculator below, the chances of a healthy male passing away over a 25 year policy term are as follows:

How Much Does Level Life Insurance Cost?

The price of a Level Life Insurance policy will vary from individual to individual depending on their circumstances.

The main factors that will be priced into the cost of a policy are:

• Your age
• Your state of health
• Your smoker status
• How much you want to insure yourself for
• The length of the policy term.

For example, if you are a 50-year-old smoker with a medical condition such as heart disease, your premiums will be a lot more expensive than a 30-year-old non-smoker who does not have any pre-existing health issues.

If you add Critical Illness Insurance to your policy, this will further increase the cost of cover.

Below are some sample monthly Level Life Insurance premiums for £250,000 worth of cover over a 20 year period for a healthy individual of various different ages.

Compare Best 10 UK Life Insurance Companies

Below is an overview of some of the top Life Insurance companies in the UK comparing some of the key details of their policy terms.

Aegon

Aegon’s Scotland-based UK operations are wholly owned and operated by Dutch insurer Aegon N.V.

• Minimum entry age: 18
• Maximum entry age: 89
• Minimum term: 1 year
• Maximum term: 50 years (cover must end before an individual’s 90th birthday)
• Maximum cover: Unlimited

AIG

US insurance giant American International Group, Inc. (AIG) was first founded in 1919 and since then has grown to operate on a global scale. It provides a range of protection products for both individuals and businesses.

• Minimum entry age: 18
• Maximum entry age: 88
• Minimum term: 2 years
• Maximum term: 70 years (cover must end before an individual’s 90th birthday)
• Maximum cover: Unlimited

Aviva

Aviva was founded in 1797, but the Aviva brand as it is today was formed in 2000 by the merger of Norwich Union and CGU PLC.

• Minimum entry age: 18
• Maximum entry age: 89
• Minimum term: 1 year
• Maximum term: 50 years (cover must end before an individual’s 90th birthday)
• Maximum cover: Unlimited

Guardian

Guardian is a relaunched protection brand with a number of unique features to its policies.

• Minimum entry age: 18
• Maximum entry age: 65
• Minimum term: 1 year (Level and Increasing Cover) / 5 years (Decreasing cover)
• Maximum term: 72 years (cover must end before an individual’s 90th birthday)
• Maximum cover: £15 million

Legal & General

L&G was formed as an insurance company for lawyers, by lawyers in 1836. It has since grown to become one of the country’s best-known financial services companies

• Minimum entry age: 18
• Maximum entry age: 77
• Minimum term: 1 year (Level Cover) / 5 years (Decreasing cover)
• Maximum term: 50 years (cover must end before an individual’s 90th birthday)
• Maximum cover: Unlimited

Liverpool Victoria

LV is the UK’s largest friendly society, with more than 5.8 million customers, 1.1 million of whom are members.

• Minimum entry age: 17
• Maximum entry age: 79 (Level or Decreasing cover) / 59 (inflation-linked cover)
• Minimum term: 5 years
• Maximum term: 45 years
• Maximum cover: Unlimited

Royal London

Royal London previously operated Scottish Provident and Bright Grey as separated brands providing Critical Illness Insurance under the Royal London umbrella. From 2016, both were merged into the main Royal London brand.

• Minimum entry age: 18
• Maximum entry age: 70
• Minimum term: 1 year
• Maximum term: 72 years
• Maximum cover: Unlimited

Scottish Widows

Founded in 1812, Scottish Widows is today part of Lloyds Banking Group.

• Minimum entry age: 18
• Maximum entry age: 79 (must end before individual’s 90th birthday)
• Minimum term: 1 year (Level and Increasing) / 3 years (Decreasing)
• Maximum term: 72 years
• Maximum cover: £25,000,000 (Level and Decreasing) / £15,000,000 (Increasing)

Vitality

Vitality entered the UK market in 2007 with a joint venture with PruHealth and PruProtect, part of the Prudential Group. It has since bought out Prudential and is now branded solely as Vitality.

• Minimum entry age: 16
• Maximum entry age: 74 (cover must end before age 90)
• Minimum term: 5 years
• Maximum term: No maximum (cover must end before age 90)
• Maximum cover: £20,000,000

Zurich

Zurich is a Swiss-based global insurance giant, operating in more than 170 countries. It employs around 55,000 employees worldwide, including 4,500 in the UK.

• Minimum entry age: 16
• Maximum entry age: 83 (must end before individual’s 90th birthday)
• Minimum term: 1 year
• Maximum term: 50 years
• Maximum cover: £40 million

Get Level Life Insurance Advice

Whatever you need Level Life Insurance for, it’s worth speaking to an expert to ensure you get such an important policy right.

The team at Drewberry can help you decide on a level of cover that’s appropriate for you, advise on whether you need to write the policy into trust and the pros and cons of adding Critical Illness Insurance to the policy.

Why Speak to Us…

We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.

• There is no fee for our service
• We are independent and impartial
  Drewberry isn’t tied to any insurance company, so we can provide completely impartial advice to make sure you get the most appropriate policy based solely on your needs.
• We’ve got bargaining power on our side
  This allows us to negotiate better premiums for you than you going direct yourself.
• You’ll speak to a dedicated expert from start to finish
  You will speak to a named expert with a direct telephone and email. No more automated machines and no more being sent from pillar to post – you’ll have someone to speak to who knows you.
• Benefit from our 5-star service
  We pride ourselves on providing a 5-star service, as can be seen from our 2372 and growing independent client reviews rating us at 4.92 / 5.
• Gain the protection of regulated advice
  You are protected. Where we provide a regulated advice service we are responsible for the policy we set-up for you. Doing it yourself or going direct to an insurer won’t provide this protection, so you won’t benefit from these securities.
• Claims support when you need it the most
  You have support should you need to make a claim. The most important thing when it comes to insurance is that claims are paid and quickly. We are here to support you during the claims process and make sure it’s as smooth and stress free as possible.

We offer Life Insurance advice on a fee-free basis. We are here to make sure you can make an informed decision and take out the most suitable cover.

If you need any help then please do not hesitate to pop us a call on 02084327333 or email help@drewberry.co.uk.

Robert Harvey
Independent Protection Expert at Drewberry