If you're reading this article, it's likely that you're trying to find the best life insurance policy for you. Taking out level term life insurance is the great way to protect your loved ones after you die. At Bequest, we make life insurance simple and straightforward, so you can find the best type of cover without the hassle. ✨
In this article, we're going to be looking at level term life insurance and why it could be the policy for you. 👀
What is level term life insurance?
Having a level term life insurance policy simply means that the death benefit paid out to your loved ones remains the same throughout your entire policy.
When you have level term life insurance, your monthly premiums are determined by the amount of coverage you need and the length of your term. These monthly premium payments will remain the same throughout the fixed period. 📅
What are the benefits of a level term life insurance policy?
A great thing about level term life insurance is that your family gets to enjoy the same standard of living if you were to pass, after all, that is the joy of life insurance. 👪
There are endless benefits to having life insurance but here are a few that will come with having a level term policy:
- Your loved ones will receive a fixed lump sum pay out so they're supported upon your death.
- Your monthly premiums stay the same so there are no hidden costs unless you make changes to your policy.
- Not only can level term life insurance cover your mortgage when you pass away, but it can cover other expenses such as household bills, education for children, support and much more.
It is the simplest of the life insurance policies
In terms of how it works, level term life insurance is super simple. You pay your guaranteed premiums over the term of your policy and if you die during the term, your loved ones receive the lump sum pay out. 💰
It's a simple way to ensure your loved ones get the protection they need when you pass away. ☂️
Level term life insurance cover is often the cheapest
Whilst it's a great way to insure your life, the cheapest type of life insurance is a decreasing term policy. This is simply due to the fact that monthly premiums decrease as the term goes on in order to stay in line with the money needed to clear a debt like a mortgage. However, level term life insurance can be cheap depending on your circumstances and wants. ⚖️
Here are some ways you can keep the cost of level term life insurance to a minimum.
- Make sure you don't over insure 👈
- Check you're not already covered with your works benefits package 💻
- Live a healthy lifestyle 🍏
- Get life insurance earlier and younger rather than later 🧒
- Do your research 🔍
How does level term life insurance work?
It's simple! Level term life insurance means your loved ones will receive a lump sum pay out upon your death. Your monthly payments and pay out stay the same over your term, meaning if you die at any time during your agreed term, your loved ones get a guaranteed lump sum. 💰
When you apply for level term life insurance, you will need to consider:
- the payout amount
- who your beneficiaries are
- the length of your term
An important thing to remember is that if you outlive your life insurance term, you will stop paying premiums and your beneficiaries will not get a pay out when you do die. It is possible to extend the term of your policy or take out a new one entirely, but this will usually result in paying much higher premiums. 📈
The term is the length of the life insurance policy
At Bequest, we offer term life insurance ranging from 5-40 years.
How you decide on a term length is completely up to you and your circumstances. Think about your reasons for getting a life insurance policy, it could be to pay off your mortgage, to help support your children financially or to pay off any debts.
If your main reason for getting life insurance is to provide cover and security to your loved ones, you may want to consider a family income benefit insurance policy. 👪
Level term policies maintain the same fixed lump sum pay out
Unlike decreasing term life insurance, a level term life insurance policy offers a fixed lump sum pay out.
If you're looking to buy life insurance and want a guaranteed fixed sum pay out, a level term life insurance might be the right policy for you. Whilst there are other life insurance options, a level term policy pays out your agreed amount if you die during your agreed term. 🗓
**Always make sure to read over your policy agreement before buying life insurance.
Level term cover keeps the same monthly payments throughout the policy
With level term life insurance, your monthly premium payments stay the same, unless you were to make changes to your policy.
Making changes to your life insurance policy such as increasing or decreasing the amount you're covered for will result in a change to your monthly premiums. 📆 You can do this easily at Bequest!
How is level term different from decreasing term life insurance?
The main differences between level term and decreasing term life insurance are the monthly premium and the cover amount. ☂️
Level term life insurance provides you with the same level of cover throughout the term of your policy, whereas decreasing term life insurance cover reduces over your term. 📉 With decreasing cover, your payout decreases each month, and if you make it to the end of your policy, your pay out would be zero.
Level term life insurance costs and risk factors
Let's talk about some examples of cost at Bequest.
Age: 22 Sum Assured: 200,000 Term Length: 25 years Level Monthly Premium Cost: £7.20 Decreasing Monthly Premium Cost: £5.39
Age: 27 Sum Assured: 400,000 Term Length: 40 years Level Monthly Premium Cost: £31.62 Decreasing Monthly Premium Cost: £18.50
Age 39 Sum Assured: £300,000 Term Length: 34 years Level Monthly Premium Cost: £49.22 Decreasing Monthly Premium Cost: £29.39
Age 51 Sum Assured: £150,000 Term Length: 15 years Level Monthly Premium Cost: £45.24 Decreasing Monthly Premium Cost: £29.12
Risk factors that increase premium payments
When you apply for a life insurance policy, there are many factors that can affect the price of your premiums. Here are just a few.
- Your age 🧓
- Your health and medical history 🍏
- Your gender (with some companies) -Your smoking status 🚬
- Your occupation 👩💻
At Bequest, we don't require a medical exam, just some basic health questions to help us understand you better.
Protect your family and future with level term insurance
One of the most popular reasons people get life insurance is to provide financial protection for family and loved ones deal with things such as everyday living expenses, mortgage payments, education costs and much more.
Pay off a mortgage with the fixed sum pay out amount
If you die during your life insurance term, your loved ones would have a lump sum to use however they'd like. Paying off a mortgage is a popular use of a life insurance pay out. 🏠
Add terminal illness cover to make the most of the last months
By adding terminal illness cover to your current life insurance policy, you could receive the full pay out if you are diagnosed with a terminal illness.
The pay out will be made upon the diagnosis of the terminal illness rather than when the policyholder dies.
Before you add it to your current life insurance policy, check that your policy doesn't already have terminal illness cover included. ☂️
With Bequest, if you are diagnosed with a terminal illness and have 12 months left to live, you can receive your payout during that time. 💛
Your loved ones can use the benefit for financial security
By having life insurance to make sure your loved ones are supported, you will be able to minimise financial worries during a time of grief. A life insurance pay out could help your loved ones keep their lifestyle up, allow your children to stay in school, take time off work and cover daily expenses. 🏠
Get your life insurance quote now
We provide a quick and easy life insurance application process to help you get covered today. Click here to get your quote now. 👈
If you have any more questions you would like answering, don't hesitate to email us at firstname.lastname@example.org or chat will with us on our website. 💛
What is level term insurance?
Level term insurance is a type of life insurance where the cover amount stays the same over the duration of the term. You pay the same amount each month in premiums, unlike decreasing term insurance and your death benefit is a fixed sum as agreed at the start of your policy.
What is the difference between level term and term life insurance?
Level term is a type of term life insurance and it means the cover amount doesn't change over the cover period.
What does level term mean?
Level term means that the cover amount and premium payments stay the same over your life insurance term.
What happens at the end of a level term life insurance policy?
At the end of your level term life insurance policy, you simply stop paying your monthly premiums and you will not be eligible for a pay out upon your death. You do however, have the option to extend your policy or get a new one entirely
Can you cash in a level term life insurance policy?
With Bequest, if you get diagnosed with a terminal illness and have 12 months left to live, you can get your payout during that time.