Level term insurance is called level term assurance and is very popular in the UK. This type of insurance is used to provide coverage in the event that the insured passes away. The benefit will be paid to the estate or the designated beneficiary as designated when you take out your insurance. If you do not designate anyone, then the insurance payout will be paid to your estate and the executors will distribute the funds according to your will. This can take time so save your family some difficulty by designating a beneficiary on your insurance policy.

Please note that if you stop making payments, the life insurance also stops automatically. These payouts are usually tax free and in some plans you can have the amount of insurance increase with inflation.

Deciding how much insurance you should have will also influence the amount of the premiums that you will pay. Some clients will want enough to cover their funerals only, while others want to leave their children and spouse a large sum to live on. So how much should you have? If you decide you want to leave your family relatively financially free of debt and still have something to ensure they are comfortable, then you will need to calculate your total insurance needs. This can mean that all of your loans are paid for and that there is sufficient capital available to support the family’s needs for some period of time.

A simple approach is as follows:

This will give you some idea of how much you will need at the time you take the insurance policy out and of course will affect your how much you will pay for your insurance premiums. Discuss the amount with your family and your broker should be able to assist you as well.

There are many sites online that offer insurance of all kinds. Our directory of life insurance companies is a good place to start. Select one of them and talk to a consultant about your needs and also your concerns.