Level Cover Life Insurance has a payout amount that stays the same for the term of the policy, as does how much you pay each month.
As the payout amount does not change over time, it won't increase in line with inflation. The monthly payment for Level Cover is set, so is the length of time you pay for – you decide the term and payout amount when you take out a policy.
For example, you may set the length of the policy term to 25 years and the payout amount to £100,000. So, if you were to pass away at any time during that 25 year term, the payout to your loved ones would be £100,000.
It doesn't matter if you die after the first year or in the last year of the policy the payout would be the same.
Who is it for?
A Level Cover Life Insurance policy can be used by homeowners to protect an interest-only mortgage. For those who don’t have a mortgage, it can be used to cover any other fixed debt. Or if you have dependants, it can be used to help support them in the future.
Because the payout amount of a Level Cover policy is set, it can be matched to a mortgage. So homeowners can take out a policy where the cover amount is the same as the loan amount of their interest-only mortgage. When they die, the insurance payout can then help their family clear the mortgage.
With Level Cover, the payout amount stays the same, whether you’ve made one mortgage repayment or you’ve only got one left. If you die with the majority of your mortgage paid off, the leftover amount could be handed down to your dependants. Or, a family could invest the payout for them or use it to support them in the future.
Loved ones with a fixed debt other than a mortgage could benefit from a one-off payment. Or it could simply be used as a gift for your family so they aren’t struggling with monthly household payments.
Frequently asked questions
What is Level Cover Life Insurance?
Level Cover is life insurance where the payout amount stays the same over the term of the policy. The monthly payments also stay the same over the term of the policy. When a claim is paid, your family will get the amount of money you took the policy out for.
Who can apply?
You can apply for our Level Cover as long as you are aged between 18 and 70, a UK resident and not a member of the Armed Forces or reservists.
How much cover can I have?
You can have Level Cover cover up to £500,000 and a total of £500,000 across all life insurance policies you have with us.
Will I need to provide medical information?
You’ll only need to answer a few simple health questions when you apply. We don’t need proof from your doctor and we won’t ask for any. So it’s a good idea to be as accurate as you can – if your family need to claim in the future this could save them a lot of heartbreak if the claim was denied.
How long does cover last?
You specify how long you want the cover to last for when you apply for the policy. The term can be as little as 5 years or as long as 50 years, but the cover must end by age 80.
When does cover begin?
If you are eligible and you wish to go ahead, you will be covered straight away.
Is terminal illness cover included?
Yes. A Level Cover policy pays out on diagnosis of an illness that has no cure or cannot be cured and which is expected to lead to death within 12 months.
How long do I need to make payments for?
You can stop making your payments at any time. If you do, your cover will end and you won't get anything back.
Will my payments go up in the future?
No. We’ll never increase your monthly payments.
Can I reduce my monthly payments?
Yes, you can reduce the payment at any time to any amount, down to £7 a month. If you choose to reduce your payment your cover amount will also reduce. If you have Serious Illness Benefit you may not be able to reduce your monthly payments to £7 a month. This is because the cost of Serious Illness Benefit is worked out separately, even though we take both payments at once.
What if I miss a payment?
Not to worry. Just make sure to pay the full amount within 60 days of the missed payment date and you’ll be fine. If you don’t pay in that time, we’ll have to cancel your policy right after the 60th day. You won’t get a refund, won’t have cover anymore and won’t be able to restart the policy.
What if I stop paying?
If you stop making your monthly payments then your cover will stop. It is worth remembering that you won’t get any money back, as this is a life insurance policy and not a savings plan. So you can’t cash in your cover at any time.
What if I change my mind?
If you cancel your policy within 30 days, we will refund any premiums you have paid. If you cancel your policy at any other time, your cover will stop and you won’t get anything back.
Can I take out additional cover?
You cannot increase cover under your existing policy; however, you can apply for a new policy. Acceptance is subject to completion of our application process. Any additional policy taken out will be subject to the terms and conditions applicable to that policy at the time it is taken out. Also, your partner can apply for a policy too – as long as they’re eligible for cover.
Who does the payout go to?
Your life insurance payout will be made to your estate and settled in accordance with your wishes laid out in your will or as directed by your personal representative(s). If you need more information or advice on making a will you can refer to the Money Advice Service.
How do my family claim?
Please call us and our trained staff will deal with the claim with kindness and sympathy. Please call our UK based call centre on our dedicated claims line:
0345 266 5400
Mon to Fri: 8am–7pm. Sat: 9am–5pm. Sun: 10am–4pm.
Or they can post to:
PO Box 409
Royal London House
To make it easier for your family at a difficult time, please keep your policy documents safe and let your next of kin know where to find them.
How quickly will you pay out?
We realise that it may be a difficult time when a claim is being made, so we’ll deal with the claim as quickly as we can. Once we’ve received all the information we need, we will make payment within 10 working days.
Got a question?
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