Term Assurance

Level term life insurance

Life insurance cover for a specified period is referred to as term assurance. Level term assurance means that the amount that your dependents receive in the event of your death during this period is fixed, i.e. remains level. So for a fixed, lump sum payable upon death during a pre-determined period, level term life insurance is worthwhile considering.

"I had an interest-only mortgage, so the amount that I owed remained the same over the duration of the mortgage. I decided to go for a level term life assurance policy to cover the mortgage in the event that I died before the mortgage was paid off."

As with most types of life insurance, the premiums that you pay for term assurance will depend upon a number of factors, including the term of the policy, your age, your general health and whether you smoke or not. Generally speaking, the younger and fitter you are, the lower the term assurance premiums are likely to be. Quite often, you get the option to renew or extend the term assurance policy at the end of its term, assuming of course that there has been no claim.

For those whose family, children and other dependents would suffer financially in the event of your premature demise, it is worthwhile considering a level term insurance policy.