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🛡️ LEVEL TERM LIFE COVER

Level term life insurance — a fixed lump sum when your family needs it most

Unlike mortgage protection, level term cover pays the same amount whenever you die during the term — providing real financial security for your family.

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What is level term life cover?

Level term life insurance pays a fixed, tax-free lump sum to your family if you die within the policy term. Unlike mortgage protection — where the cover reduces as your mortgage reduces — the sum assured stays the same throughout the term.

This makes it ideal for replacing income, covering childcare or education costs, clearing debts, or simply providing your family with financial breathing room if the worst happens.

The money is paid directly to your next of kin or designated beneficiaries and can be used for any purpose.

Who needs level term cover?

Parents with young children

To replace your income and cover childcare, education, and living costs until your children are financially independent.

Business owners

To cover business debts or fund a buy-out agreement if a key person dies.

Renters

No mortgage to protect, but your family still depends on your income.

High earners

Where mortgage protection isn't enough — to replace a significant income your family relies on.

People with large debts

To ensure debts beyond the mortgage don't fall on your family.

Level term vs mortgage protection

FeatureMortgage ProtectionLevel Term
Sum assuredReduces over timeFixed throughout
PurposePays off mortgageAny purpose
Required by lenderYesNo
CostLowerHigher
Serious illness optionYesYes
Joint life optionYesYes

Frequently asked questions

What is the difference between mortgage protection and level term?+
Mortgage protection cover reduces over time in line with your mortgage balance. Level term pays a fixed lump sum regardless of when you die during the term. This makes it ideal for income replacement or covering dependants beyond just the mortgage.
How much cover do I need?+
A common starting point is 10x your annual salary, but the right amount depends on your circumstances — your mortgage, dependants, existing cover, and financial obligations. Our AI adviser will help you work through this.
Can I add serious illness cover?+
Yes — serious illness cover can be added to a level term policy for an additional premium. This pays the sum assured on diagnosis of a specified serious illness such as cancer, heart attack, or stroke.
What happens if I outlive the policy term?+
If you survive to the end of the term, the policy simply expires and no benefit is paid. This is why choosing the right term is important — it should cover the period when your dependants are most financially reliant on you.
Can I have both mortgage protection and level term?+
Absolutely — and many people do. Mortgage protection covers the mortgage specifically; level term provides additional cover for income replacement, childcare costs, or other financial obligations.
Is there tax relief on life insurance premiums?+
Standard life insurance premiums do not qualify for income tax relief. However, income protection premiums do. Serious illness cover premiums also do not qualify for relief unless arranged through a pension.

Get a level term quote

Our AI adviser will help you work out the right amount and term for your situation.

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