Advantages of Level Term Cover

Level term life insurance is one of the most popular types of cover.

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Level term life insurance advantages explained

Level Term life insurance is one of the most popular types of cover. It will protect you in the event that you pass away during the length of your cover. It is very straightforward, as the pay-out amount remains the same throughout the length of the policy.

In this section, we’ll look at:

  • What does Level Term life insurance cover?
  • What is the average cost?
  • Combining your Level Term cover with other policies
  • Reviewing your policy
  • Choosing a single or joint policy

What does Level Term life insurance cover?

When you take out Level Term life insurance, you will set the length of the policy and the size of the pay-out. The pay-out will be the same no matter when you pass away during the term, as long as the policy is still valid.

Level Term cover is a popular choice because of its versatility. This type of policy can provide peace of mind that you have contributed to your loved ones’ financial security, even after you have passed away. Your family can use the money for a number of different purposes. This can include paying off the mortgage, covering household bills or day-to-day living expenses, school fees or any other debts.

What is the average cost of Level Term life insurance?

The cost of your life insurance premiums is dependent on a number of factors, including your age and your health. It can also depend on some lifestyle choices such as smoking. These factors, together with the length and amount of cover, determine the cost of your premiums.

Each policy is completely tailored to you and your circumstances. There is no one-size-fits-all when it comes to life insurance, as everyone’s needs and budget is are very different.

Generally, Level Term insurance policies have guaranteed premiums. This means they will stay the same throughout the term of your policy.

Combining your Level Term cover with other policies

Having more than one policy could be beneficial for protecting yourself from different circumstances. For instance, you can take out Level Term life insurance to protect you if you should pass away, and Critical Illness cover if you were to be diagnosed with a critical illness.

There are two ways to do this; combined policies or standalone cover. Combined cover means you take out both policies at the same time, and you will only pay one monthly premium. Combined cover will only pay out the full payment once. This means if you claim on the Critical Illness part of the policy, you will no longer be covered for life insurance.

Standalone cover means you can take out Level Term insurance and Critical Illness cover separately. You will pay for two policies, but you will be covered and protected for both circumstances until the policies expire.

Reviewing your policy

It’s important to regularly review your Level Term cover to make sure it still meets your needs. Your financial circumstances can change over the years, and the amount of cover you need may increase or decrease. By reviewing your policy, you can avoid underinsuring yourself or paying for cover that you don’t really need.

You might wish to review your policy if you are buying a home or having a baby. You can usually change your cover with no problem, if it is due to life events such as these.

Choosing a single or joint policy

With Level Term life insurance, you have the choice of whether to take out a single policy to cover yourself, or a joint policy with your partner. It’s important to understand that while a joint policy is typically cheaper, it will only pay out once, usually on a first-death basis.

Both single and joint Level Term policies have their advantages. A joint policy could be beneficial if you only need the policy to pay out once, such as covering a mortgage.

If you need different levels of cover, two single policies may be more suitable.

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** Premiums and payout based on a healthy non-smoker who is an office worker and doesn't have a hazardous lifestyle up to the age of 65. The premium shown is based on Aviva's Income Protection + Plan and is subject to a full underwriting process. Prices are correct as of January 2022.

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