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