Level Term Life Insurance

Although nobody likes to consider the prospect of passing away – considering life insurance is absolutely essential. Life insurance will help to safeguard your loved ones against the financial implications that can arise if you die. It could be covering debts such as loans, mortgages and credit cards, or expenses such as funeral costs.

Level term life insurance pays out a set amount If you pass away in the term of the policy. For example, if you are insured for £100,000 over 25 years and were to pass away during that time, the policy would pay out £100,000 to your loved ones.

At Freedom to Insure, we have access to prices from the entire life insurance market. This means you can rest assured that we will find the most competitive life insurance policy for you.

What is ‘level term’ cover? How does it differ to other protection products?

Level term life insurance pays out a fixed sum if the insured person dies within a set time period. The amount could be from a few thousand to millions. Cover can be in place from as early as 16 years old and can cover you up to any age. Using the example above, you could take our £100,000 of cover which would pay out if you died within 25 years. However, all of these variables can be adjusted to suit you and your requirements.

This differs to mortgage protection insurance, also known as decreasing term insurance. This type of policy reduces the size of the payout as the size of your mortgage decreases over time. For example, you could start with £250,000 of insurance which reduces to £100,000 after ten years of mortgage payments.

Finally, there is critical illness cover. This insurance pays out a sum, much like level or decreasing term insurance, but upon the diagnosis of a serious illness or condition. For example, a £50,000 payout if a critical diagnosis was made within the duration of the policy. This insurance can often be included or added to standalone life insurance policies.

Why do I need level term life insurance?

The reason most people buy level term life insurance is to replace the income lost if they died. For example, somebody who works and uses their income to support their family will take out a life insurance plan to ensure their family receive a lump sum or income should they pass away, instead of being left with nothing.

In most cases, life insurance proceeds are used to pay off any debts you leave behind, such as mortgages, car loans, medical bills and credit card debts. Similarly, the money could also be used to pay regular bills, be set aside for the future or help cover costs associated with a funeral.

Mortgages or rental costs.

Bills or regular payments.

Credit card debts.

Dependents future.

Car loans or finance.

How much does level term life insurance cost?

Level term life insurance policies can start from as little as £5 a month. The cost varies depending on a range of factors, including your age, pre existing health conditions or whether you smoke. The largest impact on premiums will come from how much cover you want and for how long.


As a broker with over 10 years of experience, we have access to the whole of the UK market. This allows us to offer a great range of products from the best insurers in the country at the most competitive prices. Fill in our quick and easy form below and we’ll get in touch to discuss your options. Alternatively, give us a call on 0800 288 9151, or visit our contact page.

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