Life Insurance

Level Term Life Insurance.

Be prepared for life’s uncertainties with Pure Cover’s Level Term Life Insurance. This specialized insurance provides essential protection

What is Level Term Life Insurance?

Ever wondered about how your family would cope with financial stress after your departure? The answer might be found in level term life insurance. Essentially, level term life insurance is a fixed-sum policy that pays off the agreed-upon amount on the death of the policyholder. It’s like a safety net for your loved ones, promising to catch them if fate decides to spring onto the trapeze.

Get a quote

Is a level term life insurance right for me?

Choosing level term cover requires understanding your specific needs and reasons for wanting life cover. It’s not a one-size-fits-all decision, but rather a personalized choice based on your unique circumstances.

View more

Get a quote now!

Secure your family’s financial future with Pure Cover’s Level Term Life Insurance. This specialized insurance offers tailored protection for a specified term

Getting level term life insurance

Got dependents or debts? Then it’s time to future-proof your finances with a solid life insurance plan. Let’s dive deep into the world of level term life insurance, unraveling its intricacies, exploring its benefits, and helping you determine if it’s the perfect fit for your unique situation.

Frequently asked questions


What happens if I outlive the policy term?


Can I extend or renew my level term life insurance?


Are the premiums tax-deductible?


Can I have more than one term life insurance?


Can I change my cover in the middle of my term?


WANT TO GET INSURED?

Get a quote now!

Take the proactive step of securing Level Term Life Insurance from Pure Cover to safeguard your loved ones and their financial well-being throughout the designated period.

What is Level Term Life Insurance?

Ever wondered about how your family would cope with financial stress after your departure? The answer might be found in level term life insurance. Essentially, level term life insurance is a fixed-sum policy that pays off the agreed-upon amount on the death of the policyholder. It’s like a safety net for your loved ones, promising to catch them if fate decides to spring onto the trapeze.

So, how does this safety net work? The policyholder decides the term and the lump sum to be issued upon their death. For example, if you buy a 20-year level term life insurance policy for £200,000, and you pass away within that time frame, your dependents will receive the £200,000. It’s as simple as that. It’s a non-flexible, no-nonsense approach to assurance.

Features of Level Term Policies

Level term policies come loaded with carefully designed features, aiming to provide adequate financial protection for your family. The primary factor, of course, is the ‘level term’, where both the policy period and the payout amount remain constant. In essence, you’ll know exactly what your family will get if the worst should happen, giving you peace of mind.

Moreover, you can also add critical illness cover to the policy. This way, you’re protected if you’re diagnosed with a serious illness during the term. Plus, you can purchase joint plans, ideal for couples where both partners wish to be covered. However, keep in mind, the policy will only pay out once, typically on the first death. It’s like life’s worst game of ‘double or nothing’.

Pros and Cons

With every financial decision, weighing up the pros and cons is crucial. On the plus side, level term insurance provides a lump sum that can secure your family’s financial future. It’s straightforward, confusion-free and the premiums won’t fluctuate – once you lock in a rate, you know exactly what you have to pay, no matter what.

However, every rose has its thorn. In the case of level term policies, if you outlive the policy, you get nothing in return. It’s like buying a ticket for a concert that may never take place. Also, the fixed payout might not keep up with inflation, gradually eroding the value of the assurance over time.

What sets Level Term Life Insurance apart from other policies?

Comparing Term Life Insurance and Life Assurance

Imagine a game of spotting the difference between life assurance and term life insurance. You’d quickly find that life assurance is a lifetime commitment, unlike term insurance that covers you for a specified period. As long as you pay the premiums, life assurance is your lifelong financial companion.

Life assurance comes with an added bonus – it builds a tax-deferred cash value over time. So, unlike term insurance, your life assurance policy could turn into a little money pot. The more premiums you pay, the more your cash value grows. And if you decide to cancel, you can claim a part of this cash value.

When it comes to affordability, term life insurance policies often win. That’s because life assurance policies are certain to pay out, meaning insurers need more financial protection. However, the premium rates for both types of policies can vary depending on the provider.

Level Term vs Increasing Term

Imagine a policy that grows with you – that’s the increasing term policy. Your cover amount and monthly premiums increase over time. It’s a perfect fit for those looking to cover their salary, children’s university fees, or anyone who wants to maintain the value of their cover over time.

This policy is your shield against inflation, keeping your payout value steady as the cost of living rises. However, remember to pay attention to the details as your premiums might rise faster than your cash benefit.

Level Term Cover vs Decreasing Term Cover

Now picture a policy that’s the opposite of increasing term. With a decreasing term life cover policy, your coverage shrinks over time, while your monthly premiums stay the same. Typically, the premiums for this policy are lower than those for level term life policies.

This policy can be your financial ally if you’re aiming to pay off your mortgage or cover any other debts that decrease over time.

Is a level term life insurance right for me?

Choosing level term cover requires understanding your specific needs and reasons for wanting life cover. It’s not a one-size-fits-all decision, but rather a personalized choice based on your unique circumstances. Here’s what you need to consider:

What’s the average cost of a level term life insurance policy?

Although monthly premiums for level term life insurance policies can start as low as £10, advertised policies for £5 are not the norm, especially if you’re seeking robust coverage.

Generalized cost figures for level term cover policies can be misleading. The initial quote can change dramatically once you provide your personal information during the application process.

For instance, a non-smoker in their thirties might pay around £8.70 per month with a typical direct insurer. Comparatively, a smoker in their forties might shell out £53.50 per month for the same level term policy benefits.

Here are some factors influencing your premiums:

  • Your age
  • Your location
  • The amount of coverage you desire
  • The policy term length
  • Your medical history
  • Your family’s medical history
  • Your lifestyle

In the case of a level term life policy, the term duration, desired payout size, and any additional services you choose also significantly impact the cost.

Comparison with Decreasing Term Insurance

Choosing insurance often feels like tipping to the scales. On the one side with the level term, and on the other, decreasing term insurance. This cousin policy decreases the payout over time, generally matching a decreasing debt like a mortgage. It’s the wind-down option.

However, decreasing policies generally cost less than level term life insurance. But remember, less cost also translates to less cover. On the other hand, level term insurance ensures a constant payout, regardless of when the claim happens within the term. It’s the steady eddy of life assurance.

Pricing and Premiums

Delving into the maze that is pricing and premiums, the decided amount relies on various factors. Your age, health, smoker status, coverage amount, and policy term duration all contribute. Think of it not unlike making a cup of tea – everyone likes theirs brewed differently, and so does the insurer.

To put things into perspective, the younger and healthier you are, the lower the premiums. As the risk of you passing away during the term is less likely. The higher the coverage amount and longer the policy term, the more you’ll have to shell out in premiums. Adding critical illness cover or opting a joint plan can also increase the premium.

Claiming Procedure

Often, the mere thought of claiming life insurance can be daunting. Yet, here at Pure Cover, we strive to make the claiming procedure as straightforward as possible. In the unfortunate event of a claim, your dependents should get in touch with the level life providers as soon as they can. They’ll guide them through the next steps.

Importantly, having all necessary documentation to hand and being honest about health and lifestyle circumstances from the get-go can ensure a smooth claim process. After all, there’s then no sour surprises about undisclosed medical conditions or lifestyle habits.

Factors Affecting Policy Cost

When it comes to the cost of level term cover, it’s not just a case of ‘pick a number, any number’. Several factors come into play. Obviously, bigger cover equals bigger premiums. But beyond this, your health, age, lifestyle (like smoking or drinking), job, and even hobbies can all influence policy costs.

Furthermore, the term you choose for your insurance impacts your premium. Longer terms usually mean higher premiums as this escalates the risk of a claim being made.

How to Choose a Term

Choosing an insurance term duration is like trying to predict the future. However, while we don’t have a magic crystal ball, the key is considering what your cover is aiming to protect. If it’s to cover a mortgage, the term should match that of the mortgage. For young children, you may wish to cover until they’re projected to be financially independent.

Also, factor in the affordability of the premiums. Stretching your budget to cover a long-term policy can be stressful if not financially sustainable. At Pure Cover, our expert team is always ready to advise you on this decision.

Level Term Life Insurance versus Whole Life Insurance

While level term life insurance is for a fixed term, whole life insurance acts as perpetual cover lasting till the policyholder’s death. It’s the ‘cover till the end’ plan. With whole life, the payout is guaranteed, but this peace of mind comes at a higher price compared to term insurance.

Keep in mind though, term coverage can often be substantial enough to cover your needs, especially when balanced against the higher costs of whole life cover. It’s always wise to assess your financial situation and what you want to achieve from the policy before making a decision.

In Conclusion

Level term life insurance presents a secure option when it comes to shielding your loved ones against the financial upheaval of your untimely demise. At Pure Cover, we’re always committed to guide you through the process and help you find the best policy to match your unique needs and circumstances.

Navigating the intricacies of Level Term Life Insurance with us is like having your very personal GPS for your journey of life assurance. And if you’re ready to embark on this quest, hit the button below to get your quote today! Remember, we’re here to make sure you find exactly the right cover you need, in the shortest possible time.

Related Insurance

Explore the array of insurance options with Pure Cover, designed to safeguard every aspect of your life. From health to life, we’ve got you covered.

Life Insurance

Ensure your family’s future with Pure Cover’s Funeral Insurance. Even in your absence, provide the best for your loved ones.

Income Protection

Secure your earning potential with Pure Cover’s Income Protection. Navigate life’s financial uncertainties with confidence.

Health Insurance

Invest in your health with Pure Cover’s comprehensive Health Insurance. Prioritise your wellbeing, because you matter.