Level Term Assurance

 Level Term Assurance

Level Term Assurance – is often called level term life insurance .  This type of cover protects you for a given term for a FIXED benefit. The amount of life cover chosen at the outset will be paid whether a claim on death is made in the first year of the term or the last year.

Eg  On a level term assurance policy, if you opted for £150,000 of cover for 20 years , you would be covered for £150,000  in year 1 of the policy and also still covered for the same amount ie £150,000 of cover in year 19

Quite often a payment would be made on the diagnosis of a terminal illness before the last 18 months of the plan, where you had 12 months or less to live. This type of protection may be suitable for family protection and Interest Only Mortgage debt, where the level of debt on the mortgage does not decrease as the years progress, however, this would depend on individual circumstances and you should seek further advice.

Level Term Assurance

  • Provides a lump sum on death or terminal illness to help provide a financial buffer for your family or to pay off debts
  • The level of cover remains the same throughout the term of the policy
  • The level term assurance policy pays out if you die during the term of the policy or if, before the last 18 months of the term, you are diagnosed with a terminal illness. (A terminal illness means you are not expected to live for more than 12 months)
  • Life insurance policies will only pay out once within the agreed time, so if the policy pays out because of a terminal illness claim, the policy and cover will end
  • Paying out on diagnosis of terminal illness may be proportionate to the level of cover under a death claim

Please be aware that this type of assurance is based on an assessment of the health of the applicant.

 

THE PLAN WILL HAVE NO CASH IN VALUE AT ANY TIME AND WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN COVER WILL LAPSE.