Level Term
Life Insurance
.
Level term life insurance is a type of life insurance that pays a fixed amount of money to your loved ones when you die, within a certain period of time.
You can also add extras to your policy, such as terminal illness and critical illness cover.
Level term life insurance is different from increasing term life cover and decreasing term life cover. Increasing term life cover accounts for inflation, so the amount paid out rises over time.
Decreasing term life cover pays out more money to your beneficiaries if you die in the earlier stages of the policy than if you die in later life.
Decreasing
Life Insurance
Decreasing term life insurance is a type of life insurance that pays out less money the longer you live.
This is different from increasing term life insurance, which pays out more money as you get older to keep up with inflation.
Decreasing term life insurance is a good option for people who want to protect their loved ones financially if they die early, but who don’t need as much coverage later in life.
For example, you might want to use decreasing term life insurance to cover the cost of your mortgage or to provide for your children’s education.
Decreasing Term Insurance
is like a safety net that shrinks over time
It pays out more money if you die early, when your loved ones need it most. As you get older and your financial needs change, the payout decreases.
If you’re thinking about getting decreasing term life insurance, be sure to compare different policies and find one that fits your budget and needs. You should also consider the following factors:
The length of the term
This is the period of time that the policy covers. Most decreasing term life insurance policies are 10, 20, or 30 years long.
The amount of coverage
This is the amount of money that will be paid out to your beneficiaries if you die.
Any exclusions or restrictions
Some policies may exclude certain types of deaths, such as suicide or death due to dangerous activities.
It’s important to choose a policy that meets your individual needs. If you’re not sure which policy is right for you, talk to a financial advisor.
Advantages & Disadvantages
Of level term life insurance
Advantages of level term life insurance:
- Predictability: You know exactly how much money your beneficiaries will receive, no matter when you die during the policy term. This can give you peace of mind knowing that your loved ones will be financially secure.
- Affordability: Level term life insurance is typically more affordable than other types of life insurance, such as whole life insurance.
Disadvantages of level term life insurance:
- Inflation: The policy does not account for rising inflation. This means that the fixed lump sum that is paid out to your beneficiaries may not be as valuable in the future as it is today.
- Expiration: Level term life insurance policies expire after a certain period of time. If you want to continue to have coverage, you will need to renew your policy, and your premiums may be higher.
Clients.
MAKE A DIFFERENCE.
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Contact.
LET’S TALK.
To discuss how we can help you please contact us using the details below for an initial chat or to arrange an appointment with one of our Advisors in Cornwall.
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