Level term life insurance is one of the simplest, yet most flexible, types of insurance on the market. It’s one of if not the only forms of insurance where you decide in advance exactly how much the insurer will pay out.
In fact the entire basis of level term policies can be explained in three steps. 1) You decide the payout amount how long you want the term to last. 2) You pay a fixed premium each year during this term. 3) If you die during the term, your nominated beneficiary gets the payout.
One of the real beauties of level term policies is that you don’t have to worry about rising premiums like you do with some life or medical policies. The premium remains exactly the same each year. (The only variation is a slight discount if you pay annually rather than monthly.)
Of course, with three variable factor in play — the term period, the payout amount and the premium amount — it can be hard to work out the best deal for your particular needs and the right balance of premium vs payout vs cover duration. That’s why a simple comparison service such as I’m Insured is the best way to compare not just different insurers, but different policy options.
Of all our policy comparison types, level term is probably the simplest. Once you’ve chosen your payout amount and term duration, the only personal details you need to provide are your contact information plus your gender, age and whether you’ve smoked in the past 12 months.
There’s a few extra options that you can build into a search. A joint policy covers two people and pays out on the first death within the cover term (if any.) An increasing benefit option means you pay a higher premium, but the cover amount rises every year to take account of inflation. And a critical illness option will pay out immediately if you’re diagnosed with a terminal illness (less than 12 months’ life expectancy) during the term.
It takes only around 30 seconds for I’m Insured to provide you premium quotes from a range of insurers. When you check out the list, you’ll also notice that with most quotes you’ll get a cashback reward for taking out the policy, usually worth 20 percent of your first year’s premium. As always with I’m Insured, you can check out the full policy terms and conditions before clicking through to buy.
Normally we’ll say you pay the insurer’s exact premium with no hidden fees, but that’s not the case here. No, believe it or not, you’ll often pay *less* than the insurer’s standard premium for your chosen policy. That’s because insurers pay a commission to comparison websites, but we intentionally take a lower commission than the standard rate, meaning you get a discount on the premium.
There are a few key legal points to remember when taking out level term life insurance. It’s neither a savings scheme nor an investment. The policy doesn’t pay out unless you die during the term; you can’t get your premiums back, and there’s no payout if you are alive at the end of the term. If you don’t keep up the premium payments during the policy term, the cover will be void.
While our price comparison is suitable for most applicants, please do get in touch with us for a personally tailored quote or consultation if you have specialist needs. A key example of this is if you have a serious pre-existing medical conditioning. Most insurers require you to declare this in advance and it could affect not just the premium prices, but also which insurer works out the best deal. Just click the “Talk to us” button on any page of the site.
We can also help with putting your policy into trust. That means you can nominate somebody to look after the money if you die and there’s a payout before you want the intended recipient to get the money. A common example is parents who want to have the payout go to a child only once the child turns 18 or 21. Putting a policy into trust also ensures that the payout goes to your intended recipient and can’t be seized by creditors if you have any debts when you die. There may also be tax benefits to putting a policy into trust.