There are two main types of level life cover policies - those which provide a tax free lump sum should you die at any time during a fixed policy term (known as term assurance policies) or those which provide cover for a set period of time, reducing at a set rate each year (known as decreasing term life insurance).

With both types of policy one may select the indexation option so your cover increases with inflation. This option is not often selected since it is quite expensive and also since many liabilities are in fact reducing i.e. protecting ones family – as each year goes by the number of years until your children are independent reduces.

The premiums you pay for term assurance plans can be guaranteed not to change during the full policy term whereas premiums for traditional whole of life plans may only be guaranteed for up to 10 years however there are new whole of life plans that allow for premiums to be guaranteed for life.

The maximum policy term for term assurance plans is to age 100.

With both term assurance and whole of life cover one may also select critical illness cover as an additional benefit – please see our ‘critical illness’ link for more information on this area. Both policies may be taken out on a single life, joint life first or second death or life of another basis.

The minimum premium you can pay is typically about - £5.00 per month.