LEVEL TERM SUM INSURANCE
Term Insurance – Level term Life Insurance
A level term life insurance, whether or not Critical Illness cover is included, provides a fixed cash lump sum of insurance benefit for the term covered.
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 is more than protecting a commitment or debt; it also offers the assurance that the sum insured remains the same thorough out the term insurance.
This means that the benefit which exceeds the mortgage can be used as you wish. Should this policy be claimed nearer the end of the policy, and when considered with a repayment mortgage which was taken at the same time, it would result in larger benefit remaining after the mortgage was repaid. This is because a repayment mortgage would have been reducing over the term, leaving a greater sum after the mortgage was paid and the difference would continue over the term.