Have you read the Decreasing Term page? No?.. it will help you in understanding this
type of plan. Not that level term is complicated, however it does explain why the life assurance industry needs to give it a title at all.
In it’s simplest form, (why would we want to make it complicated)? level term assurance means the level of cover remains the same throughout the term of the policy, unlike decreasing term assurance
( I encourage you to look at this page). So for instance, you commence a plan for a sum assured of £100,000 with a policy term of 20 years. Should a valid claim on the policy occur in the first year, a payment of £100,000 would be made. If a valid claim is made in the last month of the policy £100,000 will still be paid.. Simples!
Uses of Level Term Assurance
- Can be used to protect any mortgage or other loans you may have.
- To protect a young family in the event of a parent dying.
- To protect a business in the event of a partner or a keyman of the business dying.
- Can be used to protect a financially dependent person in the event of a death of a guardian.
Providing their is an insurable interest i.e property, marriage, guardianship or business you can insure anyone to protect your interests.
Example costs of a Level Term plan
- Plan Benefit £150,000
- Critical illness including life cover
- Term 25 years
- Age next birthday 31
- Male or Female
- Non smoker £34.00 per month
- Smoker £50.60 per month
As above except:
- Age next birthday 26
- Non smoker £25.15 per month
- Smoker £33.95 per month
Source: Assureweb. All rates correct as at 25 July 2013
For more information or if you wish to discuss further please contact:
Tel Number: 01708 640855
Authorised and regulated by the Financial Conduct Authority