With so many types of life cover available, it can be difficult to know which one is right for you.

One type of cover you may want to consider is level term life insurance. This type of policy could offer a variety of benefits that can help to ensure the financial security of your family and/or loved ones. We’ll explore the benefits of level term life cover and why it may be the right choice for you.

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What is level term life insurance?

Level term life insurance is a form of protection that offers a fixed death benefit for a set period of time. This type of policy will help ensure financial protection for your family/loved ones in the event of your death. It could also allow them to help pay off debts and help cover living expenses without worrying about money.

Term life insurance is often cost-effective because its premiums are typically low. This might be beneficial for those with a limited budget. Premiums also remain fixed over the term of the policy (unless you have chosen an increasing policy), so you won't need to pay more as you get older.

What happens at the end of level term life insurance?

Term life insurance aims to cover you for a set amount of time, typically between 5-50 years. This is to cover you for a time where your loved ones may be financially vulnerable without you.

Because of this, it is possible to survive the term of the policy and receive no pay out from it. If you have purchased your plan via Cavendish Online, then your plan will simply cease to exist at the end of your term.

Leading up to the plan coming to an end, you may want to get in touch with your adviser/broker/insurer to discuss whether a new plan will be necessary. We would suggest doing this before your old plan finishes to ensure there are no gaps in cover.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

If you are facing financial difficulty, please contact your insurer before cancelling your policy or letting it lapse. They may have options available that means you don't have to lose the plan.

Unsure of your options?

There are a number of benefits to taking out a level term life insurance. Here are a few of the main ones:

Peace of mind for your family/loved ones

With level term cover, you can rest easy knowing that your family/loved ones will be taken care of if you die.

It provides peace of mind that your family/loved ones won't have to worry about money while they mourn your passing. This policy may ensure financial security for your family heading into the future.

It could also help with funeral expenses and any other costs associated with your death. Furthermore, you may want to leave a legacy for your children/dependants.

Flexible policy length

Level term policies usually come with fixed terms ranging from five to 50 years. You can choose a term length that best suits your needs, taking into consideration your age and current financial obligations.

For permanent cover, you may want to look at whole life insurance. This type of cover protects your family indefinitely, offering a guaranteed death benefit. While it offers greater peace of mind, premiums may be more expensive due to the fact that a payout is guaranteed as long as you keep paying your premiums.

If you are struggling to pay your premiums, please contact your insurer as soon as possible. They may have procedures in place to ensure that your cover can stay in place.

Due to the nature of this policy, please be aware that it is also possible to pay more in premiums than the plan is insured for. Be sure to speak to an adviser to ensure that this is the right plan for you.

Protection for your mortgage or debts

If you're primarily looking to cover a typical repayment mortgage, you may want to consider a decreasing term life policy. This type of cover is usually taken out alongside a mortgage or other large debts.

The death benefit decreases over time as you make repayments on your mortgage. Premiums also remain fixed, but usually at a cheaper rate than a level term plan where the sum assured remains the same.

Affordable premiums

In most cases, level term insurance is one of the most affordable types of life insurance available since there is no guarantee of a payout. As premiums are fixed throughout the policy term, you can be sure your costs stay the same in the long run.

Allows for planning for long-term goals

Term life cover can be an ideal way to help protect your family/loved ones, enabling them to plan for the long-term.

Setting up a life insurance plan to replace your financial contribution or labour contribution to the household means that some plans won’t have to change if you pass away - like covering university costs for children, for example.

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How much does term life insurance cost?

When it comes to life insurance, term life insurance could offer unbeatable affordability. Premiums are fixed for the duration of the policy unless you select an increasing plan. Therefore, your cover may not impact your budget or financial stability.

Not to mention, level term life insurance typically involves much lower premiums than other types of policies, such as whole life insurance since the payout is not guaranteed.

The cost of term life insurance varies depending on factors such as:

  • Age

  • Health

  • Lifestyle

  • Occupation

  • Policy length

  • Amount of cover desired

Generally, the younger and healthier you are, the lower the premium. It’s important to review your needs to determine how much cover is right for you.

Apply for cover today

We understand that life insurance can be confusing, and you may not know what cover is best for your family/loved ones. That’s why at Cavendish Online we provide comprehensive advice. We can discuss your options, so you can make an informed decision about choosing the right cover.

Our services are tailored to meet your needs, however big or small. So, get in touch today and start protecting your family and/or loved ones with life insurance.

Or if you already know what you need, you can apply for cover online in a matter of minutes. Get started today and make sure your loved ones are taken care of.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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