Level term life cover is a form of life insurance. Its slightly complex name relates to the way it works and shouldn’t be cause for concern!

Why life insurance?

Each of us will have different financial positions, commitments and family obligations.

Yet unfortunately, untimely death can strike anyone, at any time. There are no guarantees that we will live a long life well into old age.

When we die, we may leave behind others who have to cope with the financial effects of losing us. That may range from funeral expenses up to a family’s need for major financial support to help them survive if the deceased was a major contributor to their income etc.

Life insurance typically offers the possibility to leave money behind for those close to you should the very worst come to pass.

Life insurance – different types for different needs

The policies that provide life insurance come in various forms to cope with varying requirements. One of the most traditional types is that which provides a fixed lump sum upon the death of the insured. This is referred to as level term life cover.

It gets this name because the nature of the policy doesn’t change throughout the life (or term) of the policy. At the point of inception you will have agreed a fixed premium payment and a sum to be paid in the event of your death. Neither of these two things will change however long you hold the policy.

The payment of that cash lump sum at death could be the help those you leave behind need to allow them to concentrate on grieving for you and getting on with their lives rather than fighting on a day-to-day basis to survive financially.

Life cover and other worries

Of course, you may have other concerns. You may be concerned about maintaining a roof over the head of your family in the event of your death and it is possible to take out a life policy that would help pay off your mortgage when you die.

You may also have worries about what would happen if you were diagnosed with a critical illness that meant you were unable to work. There are forms of critical illness policies that may be able to help you ease your worries in that area by offering payments should you be unfortunate enough to be diagnosed with such a condition.

All of these forms of protection can be combined and taken out to complement each other.

Eligibility

All forms of insurance contain conditions and it is typically advisable to read these carefully to ensure that you appreciate what is or is not being covered by your policies.

Level term life cover may carry conditions along the lines of:

• serious existing medical conditions must be disclosed;
• you may have to pay more for cover if you have certain medical conditions or death due to them may be excluded;
• some policies may exclude suicide or death while participating in criminal activities as valid grounds for a claim;
• there may be upper age conditions.

In general, death due to sickness or accident will be covered. Some policies may have conditions relating to participation in highly hazardous sports or occupations.

Level term life cover

This form of insurance may play an important part in helping you decide what provisions you would like to make for your immediate family following your death. Obtaining further details on level term life cover may be a good use of your time.