Level Term
A fixed sum assured throughout the policy term. Pays out if you die within the term. Well-suited to income replacement and family protection where a consistent sum is needed.
We compare whole-of-market life insurance policies to find the right level of cover for your circumstances, whether you need to protect your mortgage, replace your income or provide for your family.
The right policy depends on what you're trying to protect and for how long. The three main types are level term, decreasing term, and whole-of-life, each suited to different needs. Not sure what you need? Take our free 2-minute protection review.
Pays a fixed lump sum if you die within the policy term. The sum assured does not change over time. Suitable for income replacement, family protection, or covering a fixed debt.
The sum assured reduces over time, typically in line with a repayment mortgage. Often used to protect a specific debt. Premiums are generally lower than level term for the same initial sum assured.
Does not expire, pays out whenever you die. Carries higher premiums than term policies. Typically used for estate planning, inheritance tax mitigation, or leaving a guaranteed legacy.
Cover two people on one policy. Typically pays out on the first death and then expires. Often cost-effective but leaves the survivor without cover, your adviser will explain the implications.
There is no universal formula, the right level of cover depends on your individual circumstances. Your adviser will help you consider the key factors before making a recommendation.
If your goal is to ensure your home is mortgage-free for your family, the sum assured should at least match your outstanding debt.
How many years of income would your dependants need to maintain their lifestyle? Replacing several years of net income is a common approach for family protection.
Young children or a non-working partner increase the need for longer, higher cover. As children become independent, your protection needs typically reduce.
Death-in-service benefits, savings, and other policies should be factored in. You may need to top up or complement existing cover rather than replace it entirely.
Important: Premiums are based on age, health status, lifestyle and the level of cover required. All policies are subject to underwriting.
We compare whole-of-market policies across all major providers to find the right fit for your needs and budget.
A fixed sum assured throughout the policy term. Pays out if you die within the term. Well-suited to income replacement and family protection where a consistent sum is needed.
The sum assured reduces in line with a repayment mortgage or other reducing debt. Often the most cost-effective way to cover a capital and interest mortgage.
Guaranteed payout whenever you die, no expiry date. Higher premiums reflect the certainty of a claim. Used for estate planning and inheritance tax mitigation.
Covers two lives on one policy, typically paying out on first death. Cost-effective for couples, though leaves the surviving partner without cover after a claim.
Guaranteed acceptance for UK residents aged 50–85. A whole-of-life policy with no medical questions. Often used to cover funeral costs or leave a small legacy.
Broader family protection strategies combining life cover with critical illness, income protection, or family income benefit, tailored to your household's specific needs.
Life insurance pays a lump sum or income to your chosen beneficiaries if you die during the policy term (or whenever you die, in the case of whole-of-life cover). The payout is typically tax-free if the policy is written in trust. It does not cover illness or injury, for that you would need critical illness cover or income protection.
Most policies exclude death resulting from suicide within an initial exclusion period (typically 12–24 months). Death caused by undisclosed pre-existing conditions may also not be paid. It is essential to answer all health questions honestly at application, non-disclosure can invalidate a claim.
Premiums vary based on your age, health, lifestyle (including smoking), the level of cover, and the policy term. We cannot quote a typical premium as every case is different. We compare the whole market to find the most competitive premium for your specific circumstances, subject to underwriting.
Most life insurance applications are assessed on the basis of a health questionnaire rather than a physical examination. For higher sum assureds or where your health history is more complex, the insurer may request a medical report from your GP or a nurse screening. Your adviser will guide you through the process.
The policy term should reflect the period during which your dependants would need financial support. Common approaches include matching the term to your mortgage, running cover until your youngest child becomes financially independent, or running to a target retirement age. Your adviser will help you decide on the most appropriate term.
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