Level term assurance
Life cover for a fixed sum assured, premium and term
A level term assurance policy is life cover for a fixed term, such as 10, 20, 30 years. The sum assured (the amount payable
as a result of a successful claim) and the premium are fixed throughout the term of the policy.
The sum assured becomes payable upon death to the beneficiary.
Many insurance providers allow for a joint policy where the policy will payout on first OR second death (will only pay out once). You
decide which death you want it to pay out on at the outset.
There is no surrender value to these policies. If you stop paying the premiums the life protection stops. At the policy termination date
the policy terminates without value.
Acceptance of these types of policies are subject to age, lifestyle and health.
Such policies are used for a fixed liability for a fixed term, such as an interest only mortgage.