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.
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.
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.
Based on the Life Expectancy Calculator below, the chances of a healthy male passing away over a 25 year policy term are as follows:
1 i n 18
1 in 8
1 in 4
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:
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.
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’s Scotland-based UK operations are wholly owned and operated by Dutch insurer Aegon N.V.
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.
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.
Guardian is a relaunched protection brand with a number of unique features to its policies.
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
LV is the UK’s largest friendly society, with more than 5.8 million customers, 1.1 million of whom are members.
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.
Founded in 1812, Scottish Widows is today part of Lloyds Banking Group.
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.
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.
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.
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.
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 email@example.com.
Independent Protection Expert at Drewberry
Great service. Cannot recommend highly enough.