Term Policy

This means that your premiums are fixed – the price you pay doesn’t increase or decrease as the policy progresses. If you don’t die before the Level Term policy ends and you want to stay covered, you will need to take out another Life Insurance policy, however this will be based on your age, health and lifestyle at that time.

A Level Term policy might be suitable for you if you’re looking to protect more than just your mortgage. Level Term policies tend to be more expensive versus a Decreasing Term policy, which is used primarily to pay off a mortgage, however the sum assured does not decrease and can be a suitable way to pay off debts, as well as providing a lump sum to your loved ones.

For example, if you chose a Level Term policy when you first took out a mortgage and were to pass away having paid off only half it, the remainder of the mortgage would be covered by the policy and the rest of the money could be distributed between your dependents.