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What are the Benefits of Level Term Life Insurance?


 

| What is Level term Life insurance?


Level term life insurance pays out a set amount if you pass away during the term of the policy. For example, when you are insured for £100,000 over 25 years, you would receive that amount were you to pass away at any time during the duration of the policy. It's known as Level term is because your policy premiums stay the same during your policy term, unless changes are made to your policy.


| What are the Benefits of Level term Life Insurance?


One of the main benefits of Level term Life Insurance is the predictability. Your monthly direct debit will stay consistent throughout your policy, so there's no need to budget or track your payments, giving you that out of sight out of mind mentality.


Another benefit is that your Level Term Life insurance will help to financially support your family if you are to pass. The lump some that they are payed will help to cover any outstanding debts, such as your mortgage or even funeral costs. This could also support them in their daily life with their monthly expenses, such as bills or groceries.


You can get level term Life insurance up to 60 years long! So you could start your life insurance when you're in your twenties, and still be covered up until your 80's. However, this does depend on what insurer you get your policy with.


| Are there any Drawbacks to Level Term Life Insurance?


As Level term does have a lock in rate, If you're looking to get your policy while you're not in the bets health, you could be paying an inflated rate per month. Factors that could affect this are if you're in the process of cutting back on smoking, you've recently changed your diet or maybe waiting for a major surgery.


Another drawback could be that you want to decrease your policy sum as you don't need to payout as much as you once did. Maybe you got your policy when your children were younger, but now they're grown up and financially stable themselves. However, the younger you start your policy, the cheaper your monthly direct debit will be. So this may not be an issue in the future, financially.


| Is it worth getting Level Term Life Insurance?


Depending on your circumstance, your policy premiums could start at as little as £5 a month. This would then be your fixed rate throughout the duration of your policy. So you could be in your 40's with a decent wage, where sparring that £5 a month isn't going to financially affect you, how ever it will affect your family for the better if they were to lose you.


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