Compare Quotes Level term life insurance A fixed payout to protect your family from 20p-a-day* Rated 'Excellent' with 58,668 customer reviews Homepage Life insurance Level term life insurance What is level term life insurance? Affordable monthly premiums Provides a fixed sum assured Payout up to £1,000,000 Term up to 40 years Cover from 20p-a-day* Level term life insurance is a form of cover that provides your loved ones with a fixed lump sum pay out if the worst were to happen to you. The sum assured (or pay out amount) and term length of the policy are specified at the point of application. Unlike decreasing term life insurance, the sum assured with level term cover maintains it’s value throughout the term. Regardless of how far into your policy you pass away, your loved ones will receive a fixed amount. However, if the end of the term is reached before your passing, the cover expires and no pay out will be received. Watch our short video on level term life insurance cover. Play Compare Level Term Life Insurance Quotes » Why level term life insurance? Level term life insurance is ideal for protecting your family against large expenses if you were no longer around. This could be settling outgoings previously covered by your income: Mortgage repayments Day-to-day family living costs Outstanding debts in your name Or it could also be used to help your family with: The cost of your funeral, (average cost £4,184[1]) Provide an inheritance, (to spend as they wish) Donate to your chosen charity The sum assured holds its value, meaning that regardless of when you pass during the policy term, the pay out sum remains level. For this reason, level term cover is well suited for covering expenses which do not change significantly over time. Level term mortgage life insurance Typically speaking there are two forms of mortgage in the UK: Interest-only Repayment Interest-only mortgage With an interest-only mortgage, payments are only made on the interest accrued on the loan and not the property's capital value. In this instance, if you were to pass away, the value of your property would need to be covered in order to enable your family to remain in their home. A level term policy is ideal in this instance as cover for the equivalent of your mortgage can be secured so that at any point the value of your property is covered. As a result, your family will not have to worry about meeting the mortgage repayments without your income. Repayment mortgage In contrast, a repayment mortgage results in monthly repayments slowly paying off the outstanding value of your home. Therefore, the amount you owe the mortgage lender decreases over time. In this instance, a level term policy would mean that as your mortgage decreases, more of the pay out could be used as an inheritance, to meet funeral costs or whatever else your loved ones deem fit. If you only need to cover the balance of a repayment mortgage, a decreasing term policy may be more suitable. Here, the pay out value can be set to reduce at the same rate as the outstanding balance. Protect your Family home & living costs Compare Level Term Quotes » Find Your Perfect Policy Level term vs decreasing term life insurance The key difference between level term vs decreasing term life insurance is the pay out sum. With level term life insurance, the pay out holds it’s value. This means, regardless of when you pass away during the term, the amount your loved ones receive is fixed. Decreasing term life insurance, on the other hand, has a sum assured which reduces throughout the policy term. Therefore, the further into the policy you pass, the less your loved ones will receive. As the pay out sum decreases, so does the risk to the insurer, making this form of cover cheaper than level term. Cost of level term life insurance The cost of level term life insurance cover will depend on your individual circumstances. As with other forms of life insurance, the risk you pose to the insurer will be used to calculate your premiums. The greater the risk you pose, the more you will be charged for your life insurance premium. The cost of your level term premiums will be determined by a number of key factors, including: The level of cover required The length of the term Age Smoking status Medical history Weight/BMI Whether critical illness cover is added Because the pay out sum remains fixed throughout the policy, level term premiums will usually be more expensive than decreasing term. At Reassured, all level term policies we sell have fixed premiums. This means the amount you pay each month will not change during the policy term. We’ve used our award-winning broker service to compare the average life insurance cost of a level and decreasing term policy for a non-smoker, wanting £100,000 cover, over a 20-year term: Age Level term Decreasing term % Difference 30 £5.04 £4.88 -3% 35 £5.95 £4.99 -16% 40 £8.16 £6.09 -25% 45 £14.83 £8.17 -45% 50 £21.29 £11.51 -46% How much level term life insurance do I need? The amount of level term cover you require will depend on what it is you are looking to protect. When determining how much life insurance you need, consider how much your loved ones would need to pay for all the necessary outgoings. For example, think about daily living expenses, household running costs, mortgage/rental payments and funeral costs. Your available monthly budget is also likely to affect the amount of coverage you secure. Your health and wellbeing will be taken into account when calculating your monthly premium. Therefore, those who are older and/or in poor health may not be able to afford the desired level of cover. As a result, you may have to reduce the amount of cover you take out. In order to find the most cost-effective policy, it is best to compare quotes from multiple insurers. Using a life insurance broker, such as Reassured, could save you money and also help you make an informed decision. How much life insurance do you need? Enter your financial commitments below to understand how much level term life insurance cover you need. Remaining mortgage debt? ? £ Childcare, school or higher education costs? ? £ Loans, credit cards & any other debts? ? £ Additional lump sum gift? ? £ Funeral costs? ? £ Existing life insurance, death in service & savings? ? £ - Your total cover estimate £ 0 Let us find your best quotes. Compare Level Term Quotes » What is level term assurance? Level term cover is a form of insurance, as opposed to assurance, because a pay out is not guaranteed. Insurance pays out if you die during the policy term, whereas life assurance guarantees a pay out when you die. Whole of life insurance is a form of life assurance which pays out a lump sum to your loved ones after you are gone. Unlike level term, whole of life insurance lasts for the rest of your life. Meaning that as long as you continue to pay your premiums, the policy does not expire. Whilst this guarantees your loved ones a pay out, it may not be a cost-effective solution for those who are younger and/or in good health. This is because it is possible to pay more into the policy than it will pay out. As a result, those in this demographic are more likely to benefit from a level term policy which offers lower premiums. Provides a fixed cash pay out Compare Level Term Quotes » Save Money Joint level term life insurance On average, a joint level term policy will save you approximately 25% compared with two single policies. A joint level term policy protects two people simultaneously and upon the first death, the surviving party will receive a fixed pay out. However, once a pay out has been issued, the joint cover expires. This can leave the surviving partner uncovered and needing to secure new cover when older - which is likely to mean higher premiums. Equally, it is important to consider what would happen if both parties were to pass away at the same time. In this instance, only one pay out would be made, which may not be sufficient, especially if you have young children. When considering whether to take out a joint or single level term policy, it is important to determine the cover you require and if this meets your needs in a worst-case scenario. What happens if you outlive your level term policy? When arranging your level term life insurance, the term for which you are covered will be specified. Typically, this will be somewhere between 20-40 years. For example, to cover your mortgage until it is paid off or until your children are financially independent. However, your policy is only valid during this period. If you were to pass away after the policy has expired, no pay out will be issued. Level term life insurance and critical illness Most level term policies allow you to include critical illness cover at an additional monthly cost. This extra level of protection provides you with a pay out if you are diagnosed with a critical, yet non-terminal illness, covered by your policy. Typically, this covers a heart attack, stroke and various forms of cancer, amongst other life-changing illnesses. The added coverage could help pay private medical bills, fund necessary adaptations to your home or simply to enjoy with your loved ones. Level term life insurance and terminal illness It is commonplace for most level term policies to come with terminal illness cover as standard, (at no extra cost). This enables you to claim early on your policy if you are diagnosed with a terminal illness and given less than 12 months to live. An early pay out could be invaluable to cover expenses such as private medical treatment, a carer, house adaptations or provide you with peace of mind by alleviating any financial stress. Level term cover from as little as 20p a day Compare Level Term Quotes » Find Your Cheapest Policy When your circumstances change Your life insurance needs are likely to evolve over time, as your personal circumstances change. For example, you may purchase a larger family home and/or decide to have children. In both of these instances, it could be possible to evoke a special events option on your level term policy if this is offered by your provider. This allows you to increase your level of cover without the need for additional underwriting. When your circumstances change, it is important to contact your insurer to ensure you have enough coverage in place to meet your needs. It may also be beneficial to obtain a new set of quotes to determine whether it is more cost-effective to alter your existing policy or take out new cover. Writing your level term policy in trust Writing your life insurance in trust is essentially a legal agreement whereby you sign the rights of your policy over to a trustee upon your passing. This process brings with it a number of important benefits: Avoid or minimise 40% inheritance tax (IHT) Avoid probate, for a faster policy pay out More control over your policy, (who gets the proceeds, how and when) Upon your death, by default, the value of your level term life insurance policy will form part of your estate. Anything over the £325,000 inheritance tax threshold is chargeable at 40%, reducing the amount received by your loved ones. However, writing your life insurance in trust allows you to detach your policy from your estate, meaning your loved ones receive 100% of the pay out. It will also impact the overall value of your estate, meaning the amount of inheritance tax paid may be reduced too. Another benefit of writing your policy in trust is that you do not have to wait for probate, allowing your loved one's faster access to funds. Finally, by appointing a trustee, you are able to detail how you would like the proceeds to be distributed. Whilst this is at the discretion of the trustee, it can increase the control you have over the policy after you are gone. Reassured's free trust service Writing your level term life insurance policy in trust doesn’t have to be difficult. At Reassured, we are proud to offer our customers a free trust writing service, (if required and if offered by the insurer). One of our team will walk you through the application process, answering any questions you may have and putting your mind at ease. Compare level term quotes » Save time and money Did you know level term life insurance quotes can differ significantly in cost between insurers? Therefore, to ensure you get the right policy, at the best price, it is essential to compare quotes. At Reassured, we can carry out this process, saving you valuable time and money. And the best bit is our award-winning broker service is completely fee-free to use. We will help you understand all aspects of the policies available, providing you with all the information you need to make an informed decision. Simply get in touch today to start comparing level term life insurance quotes. Compare The Best Level Term Quotes » Sources: [1] SunLife (2021), Cost of Dying Report, sunlife.co.uk/costofdying2021 [2] https://moneytothemasses.com/quick-savings/insurance-2/life-insurance/much-100000-life-insurance-cost Related articles: Term life insurance vs whole of life insurance 7 min Compare term-based life insurance and whole of life… Read now Can you have more than one life insurance policy? 8 min Have you ever asked 'Can you have more than one life… Read now Life insurance for parents 9 min Have you ever wondered what would happen to your family's… Read now Best life insurance providers 9 min Many have attempted to quantify who the best life insurance… Read now Life insurance for self-employed 8 min It's even more important for those who are self-employed to… Read now Life insurance over 40 9 min Arranging life insurance in your 40s can open you up to… Read now Life insurance with pre-existing conditions 10 min Did you know that it's still possible to secure affordable… Read now Life insurance no medical 9 min Did you know you can secure life insurance without needing… Read now Over 60 life insurance 10 min Good news, people in the UK are now living longer than ever… Read now Life insurance with a free gift 12 min Many life insurance policies now come with a free welcome… Read now Life insurance for mums 9 min Life insurance helps mums secure the financial future of… Read now Impaired Life Insurance 7 min Have you ever wondered what impaired risk means with… Read now We’re rated as 'Excellent' with 58,668 customer reviews Very easy to understand and very quick Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good! Mrs M Rushworth Articles Careers Press releases Insurer reviews Privacy Policy Terms and Conditions Gender Pay Statement About Contact us Modern Slavery Act *£10 month Life Insurance quoted rates are based on level term life cover for non-smokers and are subject to individual status and medical underwriting. Correct as of 1st July 2021. £287,852 over 20 years - 30 year old born in 1991 (AIG) £211,219 over 20 years - 35 years old born in 1986 (AIG) £160,636 over 15 years - 40 year old born in 1981 (AIG) £95,191 over 15 years - 45 year old born in 1976 (AIG) £70,654 over 10 years - 50 year old born in 1971 (AIG) £43,898 over 10 years - 55 year old born in 1966 (AIG) £21,261 over 10 years - 60 year old born in 1961 (AIG) £11,239 over 10 years - 65 year old born in 1956 (LV=) £7,141 over 10 years – 70 year old born in 1951 (LV=) *£5 month Life Insurance quoted rates are based on level term life cover for non-smokers and are subject to individual status and medical underwriting. Correct as of 1st July 2021. £90,779 over 20 years - 30 year old born in 1991 (L&G) £60,151 over 20 years - 35 years old born in 1986 (AIG) £39,538 over 15 years - 40 year old born in 1981 (AIG) £26,649 over 15 years - 45 year old born in 1976 (L&G) £16,274 over 10 years - 50 year old born in 1971 (AIG) £9,544 over 10 years - 55 year old born in 1966 (L&G) £6,580 over 10 years - 60 year old born in 1961 (L&G) £3,830 over 10 years - 65 year old born in 1956 (L&G) £2,056 over 10 years - 70 year old born in 1951 (L&G) © Copyright 2021 Reassured. All Rights Reserved. Reassured Ltd is authorised and regulated by the Financial Conduct Authority (616144). Registered office: 1st Floor, Belvedere House, Basing View, Basingstoke, Hampshire, RG21 4HG. 06838409 registered in England and Wales. By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. Preferences Accept