What is Level Term Life Assurance?
Level Term Assurance Policy Features:
- A policy for a fixed number of years.
- A guaranteed sum assured (amount of cover) paid on death during the term of the policy.
- No cash in value at any time.
- No surrender value.
- Premiums can be guaranteed or reviewable throughout the term.
Many companies now offer the option to increase the sum assured in line with inflation - your monthly premium will also be increased annually by the same percentage.
Level Term Assurance Policy Benefits
- Life cover for family protection.
- Life cover for interest only mortgages.
- Can be purchased with or without critical illness cover.
- Normally includes terminal illness benefit as part of the standard policy.
Level Term Assurance Policy Limitations
- You may want to extend the term, but this is not possible.
- If your state of health changes during the policy term you may not be accepted for any further life assurance.
- No investment element.
- The fixed sum assured will not take account of inflation unless you choose a company which offers this facility at the beginning of the policy.