Essentially, level term insurance is a life insurance protection plan. In the event of your death, it provides financial cover to your beneficiary. It provides financial stability for your family in the case of your death. While it's a macabre subject—no one likes to plan for their death—it's important to prepare for the future, should the worst happen.
Should you die during the policy's term, the insurance company will pay your beneficiary a fixed sum of money. In return, you will provide monthly payments to the insurer for the duration of the term.
Term insurance is often arranged with a mortgage. It pays a cash sum which can be used to repay an outstanding mortgage and leave money for the beneficiaries to live off. Level term insurance ensures the sum insured remains the same thorough out the term. Therefore, the benefit which exceeds the mortgage can be used as you wish.
Level term insurance costs are calculated using life expectancy; therefore, the older you get, the more a policy costs. As a result, it's important to choose a suitable term length early on. Should you outlive your policy term, the annual cost for new one could costly; this is because your older age and health conditions will be considered during the insurance calculation.
If you want to find out more about term insurance, please click here. Alternatively, you can contact a member of our dedicated team. Our friendly experts cover the whole country from our Norwich office, with others based in London and the South East. We look forward to hearing from you.