Level term assurance is one of the simplest, most reliable forms of life cover. It pays a fixed lump sum — the sum assured — if you die within a set term, say the next 18 years. The payout stays the same from the start of the term to the end.
Key features
- Fixed payout — the sum assured stays constant for the whole term, giving clarity and predictability.
- Financial security — designed to help your family keep their standard of living.
- Tailored cover — set the amount to match your family's needs.
How much cover do you need?
It depends on things like outstanding debts, your family's living expenses and future needs. Remember to take into account any 'death in service' benefit from your employer, which may reduce the amount you need.
How long should the policy run?
Match the term to your circumstances — often until the children finish their education, or until the main earner reaches pension age.
What affects the premium?
Age, health, smoking status and occupation all play a part. Couples can choose separate or joint policies, depending on what suits them.
Trusts and Inheritance Tax
Writing the policy in trust can help keep the proceeds outside your estate for Inheritance Tax, so they pass directly to your chosen beneficiaries. It's also worth reviewing your cover every few years so it keeps pace with changing circumstances.
Important — please note
This article is general guidance, not personal advice. Cover, terms, limits and exclusions vary between policies and insurers, so always check the policy wording. Premiums depend on your individual circumstances.
For a recommendation based on your own situation, please get in touch.