Level Term Life Assurance is perhaps one of the most straightforward types of life assurance available. Level term means that if you need to make a claim, the sum assured will not vary during the term of the policy.
What should I know about Level Term Life Assurance?
Unlike other types of cover, the sum assured (the amount the policy will pay out) is agreed at the beginning of the policy remains the same throughout the term of the policy. The policy is set for a fixed numbers of years and the sum assured in the event of your death will not change.
Level Term Life Assurance can cover you for the term of your mortgage and beyond.
Knowing that your mortgage will be paid off in the event of your death gives you peace of mind and could help towards securing your family’s financial future. You can decide exactly how much cover you need you need, this can include your mortgage, existing debts and you can opt for additional cover to allow your family to continue to enjoy the standard of living they are used to, this could include lifestyle choices and future University fees.
Keeping pace with inflation.
Let’s assume that you need a level term policy to cover your mortgage and family for £200,000 in today’s money. If you make a claim some 20 years later, once your mortgage is paid off, will the remaining balance be sufficient to meet your family’s needs?
You can index link your policy and premiums from the outset, you can link the sum assured to the Retail Price Index so as inflation increases the sum assured increases, and this guarantees that your policy retains its value.
Why choose this type of assurance?
If you’re a homeowner with a mortgage and financial dependants, Level Term Assurance should be considered as your minimum requirement for protecting your mortgage and family.
The sum assured is fixed and the monthly premiums will not change through the term of the policy unless you opt for index linking your premiums.
Are there any other considerations with this type of policy?
In simple terms, the policy will have a fixed term and once the term has expired, your policy will be cancelled. If you still require life Assurance at this stage, you will need to consider that you will be older and you may have health issues that could increase your premiums if you decide to take out a new policy.
We never forget the detail!
Our Consultants are qualified and trained to all aspects of Life Assurance. We will carefully review your personal circumstances now and your aspirations for the future.
We will make a recommendation that gives you the peace of mind and the security your family and loved ones need.