Level term life insurance cover provides you a fixed amount of cover payout amount throughout the term of the policy. Effectively this type of cover is the ideal option if you are looking for a set amount of cover for a certain period.  This means that the amount of cover you insure yourself for will stay fixed throughout the term of the policy. As a potential level term policy holder, you will need to think about how long you want to have your protection in place for this is why It is important to bear in mind that should you live beyond the length of the policy term, you will no longer be protected in the event of your death and if you wish to open up a new policy to continue cover, it will be more expensive due to your increased age.

The price of your premiums will be based on various things. Firstly, your health, you family medical history and the general riskiness of your lifestyle – this includes whether or not you smoke.

Beyond this, the length of the term you choose and the size of the pay-out you want will of course set the amount you pay for your premiums.

Whole-of-life insurance will pay a tax-free lump sum to your loved ones in the event of your death. This type of life insurance guarantees a pay-out, because it covers you for life, so quotes can often be higher than term insurance premiums. Whole-of-life insurance is designed to last as long as you do. You pay in a premium every month and when you die, the policy pays out a lump sum to your loved ones.

The difference between whole-of-life insurance and term insurance is that term insurance only runs for a set period. With term insurance you select how long you want the term of the policy to last when you get a quote, for example 25 years.