Level term life insurance is one of the simplest types of cover and the easiest to understand. So, if you’re really busy and haven’t really got the time to sift through quotes and jargon, don’t worry. We can do it for you. At Busy Bee, we work with some of the leading insurers, and we have a team of trained financial protection advisers on hand to explain everything.

What is level term life insurance?

Level term life insurance can provide a lump sum to help your family if you were to pass away. This can be incredibly helpful if your family were to find themselves in a difficult financial situation without your input. The pay-out amount is decided by you when you take out the policy, as well as how long you want the policy to run for.

Along with other health and lifestyle factors, this information helps to determine the monthly cost of your insurance, which you will pay until the policy ends.

One of the benefits of level term insurance is that the pay-out amount will be the same no matter when you pass away during the term. So, whether something unfortunate happens at the beginning or end of the policy term, your family will have access to the same amount of financial support.

Why choose level term life insurance?

Level term life insurance can protect your family against some of the biggest expenses in your household, helping them to continue paying the bills in your absence. Whether you are leaving behind a partner, young children or grown-up children, any financial help is huge during such a difficult time.

Your family can use the pay-out from your level term insurance policy to cover a number of different outgoings that may have been previously covered by your income. This can include a repayment mortgage, childcare, school fees and day-to-day living costs. In some cases, the pay-out can be incredibly helpful towards funeral costs or even as part of an inheritance.

How much is level term life insurance?

You no doubt already have a list of monthly outgoings to keep track of. After the type of cover, the next thing you’re probably thinking about is how much it’s going to cost you. 

The cost of level term life insurance can depend on a number of factors, including your health, age, smoking status and the amount of cover. It is important to consider your income along with your outgoings and debts in order to get an idea of how much your family would need. 

Your monthly premiums can also depend on how much of a risk you pose to the insurer. In other words, are you in good health? Most providers will ask for information on your medical history and whether you smoke to gain a picture of your health and therefore determine the cost of your insurance. 

Applying for life insurance takes just one little form and a few questions, free from confusing jargon. It’s important to be honest when it comes to your answers; this makes it easier for us to handle the tricky stuff and get your application processed as quickly as we can.

Level term vs decreasing term life insurance

There are two main term-based life insurance policies; level term and decreasing term. The key difference is how the cover pays out if a claim is made. Level term life insurance holds its value, with a fixed pay-out amount regardless of when you pass away during the term. 

Decreasing term life insurance, or mortgage life insurance, involves a pay-out that decreases over time, usually in line with mortgage payments. The type of policy you choose may depend on what your family will intend on using the pay-out for. We can help you choose the right cover for your family.

Can you get a joint policy for level term insurance?

Many couples choose to protect themselves with a joint policy as it can be cheaper and easier to set up. However, a joint policy will only pay out once. This can mean the surviving partner is left without cover and will need to secure a new policy for themselves. This could be risky as you may be older when this happens, making it more difficult and more expensive to get cover.

It’s difficult to think about what might or might not happen in the future and how this should impact your decision on life insurance. Consider your circumstances and what cover would best suit your family. At Busy Bee, we can help you to find the right cover depending on your financial needs.