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Level term life insurance

Get level term life insurance and protect your family against the unexpected

  • Compare level term cover from multiple providers

  • Find a life insurance policy that suits your needs

  • Feel reassured that your loved ones will be taken care of

Which life insurance brands do we work with?

We compare 14 of the leading life insurance brands in the country, including:

company logo for lv-v1company logo for hsbc-110company logo for aig-110company logo for virgin-money-newcompany logo for royal-london-110-69

Receive a gift card when you buy life insurance

Take out life insurance online through MoneySuperMarket and receive an Amazon.co.uk Gift Card** worth up to £200.

Gift card is redeemable within 40 days of 6th life insurance payment. Gift Card value varies based on the first monthly premium of policy and will be confirmed on the results page. Terms and conditions apply. Not available to those who’ve received a voucher with a life insurance purchased after 28th of February 2021. One voucher per person, offer ends 31st January 2023.

**Restrictions apply, see www.amazon.co.uk/gc-legal

Image of Amazon gift card above a table which shows the card amount you will recive according to the policy amount

What is level term life insurance?

Level term insurance is a life insurance that has a level pay-out the entire time you own it. A level time life insurance policy will be active for a limited time. Your ‘term’ determines how long your policy will last. Your life insurance ‘term’ determines how long your policy will last and your premiums and death benefit will stay the same for the entire length of the term. your premiums and death benefit will stay the same for the entire length of the term. Your beneficiaries will receive the same amount regardless of when you die during the policy while it is active.  

Chart depicting level term insurance with cover on the X axis level for the length of policy on the Y axis

What are the benefits of a level term policy?

There are a number of reasons why you might choose level term life cover, including: 

  • 1

    Fixed premiums

    You'll have fixed premiums, so taking out your policy earlier in life allows you to lock in low monthly payments, and you'll know exactly what you will be paying each month making it easier to budget.

  • 2

    You know what you're getting

    Your death benefit will remain the same throughout the duration of your policy, so your dependents will know how much they'll receive

  • 3

    Financial support

    A level term life insurance pay out can offer financial support to your loved ones when you die, as a source of income or to cover things like loan repayments 

What should I consider?

  • Temporary coverage

    If your life insurance is not claimed before the term’s end, you will not receive a pay-out

  • Reapplying may be expensive

    Reapplying for life insurance when your term policy expires can result in more expensive premiums

  • No inflation

    Your fixed pay out won't take into account inflation, so if you have cover of £100,000, this won't hold the same real value in 20 years time

  • Less expensive than whole of life cover

    A term life insurance is a cheaper option than a whole of life policy with the same value pay-out at the end.

Why compare life insurance with MoneySuperMarket?

Our mission is to help you super save, making it easy to find great life insurance deals all in one place.

  • Get covered immediately

    80% of our customers have the option to ‘buy now’, without medical exams or additional documentation, for the price quoted

  • Deals tailored to you

    We ask all the right questions to match policies to your exact needs, and our large provider panel to choose from means you have a great chance of finding cover that’s right for you

  • Super Save with us

    Over the last 3 years, MoneySuperMarket have helped over 125,000 customers find great deals3 on their life insurance. Why not get quotes from us and see how much you could save?

We're 100% independent, working only for our customers

Unlike some of our competitors, MoneySuperMarket is not owned by an insurance company. So we can offer the best value, with savings delivered straight to you.

By combining independence with our excellent technology, we can negotiate the best prices and the best value on products and services.
4.7/5

of our customers would buy again
based on 356 reviews

Good Points: A seamless process and easy to understand. Improvement Points: N/A
Pros: Super easy, much much easier than I had anticipated and insuring for large amounts was a lot cheaper than I thought also. Cons: no
Pros: Just simple quick.. no contact trying to upswell the product like a lot of companies

How much does level term insurance cost 

There are a few different factors that may affect the price of your policy price. These factors include: 

  • Medical History

    Some insurers require medical history from your GP before issuing a policy. A history of medical conditions, especially serious illnesses such as cancer, diabetes or heart disease will increase your premiums.  

  • Age

    As you age, the likelihood of an insurer will have to pay out on your policy increases, therefore, as you grow older, your premiums are likely to increase. 

  • Gender  

    Women tend to live longer than men by a marginal number. However, the disparity between life expectancy between men and women means that woman may pay less for like insurance than men do.



  • Lifestyle & occupation

    Depending on how dangerous your occupation is, your premiums may be adjusted due to any risk factors.

  • Smoking

    If you are a smoker, you have a higher risk of developing health issues and dying early which is why being a smoker will increase your premiums. 

  • The policy type

    The type of life insurance policy you get will affect the premiums you pay. The more comprehensive your policy is, the more expensive your premiums are likely to be.

How much cover do I need?

How much level term life insurance you need will depend on a few factors. You should consider how much your dependents rely on your income, any repayments you have left to make on your mortgage or other loans, and how much you can afford to pay for your premiums each month.

To make sure your pay-out is financially protected, you can choose to put your life insurance policy in trust. This can help avoid the value of a pay out becoming liable to inheritance tax and prevent it from falling within your estate.

An easy way to figure out your coverage needs is to use a life insurance calculator.

Put in a few details and we will calculate how much cover you will need to support your loves ones if you pass away. This will ensure that you are not under or over-insuring yourself and your family will be well catered for the way you want them to when you're gone.

MSM discount image

How can I get a cheaper deal?

There are ways you can save on your level term life insurance, including:

  • Don't over-insure

    While it can be tempting to buy a large amount of cover, this will make your premiums higher

  • Risk factors

    Limiting your risk factors such as quitting smoking can improve your health, and it could also mean cheaper life insurance premiums

  • Buy early

    The earlier you take out a life insurance plan, the cheaper your monthly payments are likely to be. Buy now and save money in the long term

  • Shop and compare  

    MoneySuperMarket allows you to can compare different levels of cover, different policies, and a wide range of insurance providers all in one place



Alternative policy types 

There are other policy types that you may want to consider including decreasing term life insurance. This policy: 

  • Offers a single pay-out that reflects the amount left to pay on your mortgage  

  • Helps ensure that your debts aren’t left to your family  
     

If you are looking for a policy that will cover you during your whole life or one that includes a pay out that increases over time, read our guide explaining the different policy types available to you.  



level term life insurance graph showing policy amount stays steady during policy

Need to speak to someone about life insurance?

We run our life insurance service with our partner, LifeSearch. If you'd like some guidance about what kind of cover you need, you can talk to them free of charge

Give them a call on 0800 197 3178.

Their opening hours are:

  • Monday to Friday 8am to 8pm

  • Saturday 9am to 2pm

  • Sunday 10am to 3:30pm

MSM discount image

You will need to give your insurer details about your current health and medical history, along with your occupation, lifestyle habits and whether you are a smoker.

If you don’t pass away during the term of your level term life insurance, your life insurance will lapse and you’ll need to take out a new policy if you want to continue with your cover. With this in mind, it’s important that you know when your level term life insurance policy is due to end. 

If you outlive the term of your policy, your dependents won’t receive a pay out when you die. Some insurers may offer to extend your policy’s term, but it’s likely to come with a higher premium. 

Before you renew your cover, it’s a good idea to weigh up whether you still need your life insurance. It’s likely that your financial circumstances will have changed during the term of your policy, like your mortgage being paid off. 

If you still need your cover, you may be able to reduce the pay out amount and in turn reduce the cost of your premium.

Critical illness cover can help to pay for your mortgage and other outgoings if you’re diagnosed with a serious medical condition, like a heart condition or certain types of cancer.

Adding critical illness cover to your level term life insurance policy means you’ll have more cover – so your monthly life insurance payments will be more expensive.

You can generally take out critical illness cover either in addition to or combined with your life insurance policy:

  • Additional cover: Life insurance with an additional critical illness policy pays out a) if you get a critical illness and b) if you pass away (both during the term of your policy)

  • Combined cover: Combined life and critical illness cover only pays out once, either if you become critically ill or if you pass away (both during the term of your policy)

MoneySuperMarket gives you the option to add additional critical illness cover when you’ve got your life insurance quote, with your premium calculated using the details you gave when applying for life cover. We believe this offers a more flexible and comprehensive solution than a combined policy.

Whether you should take out single or joint level term life insurance is up to you. If you have dependents, it’s a good idea to take out life insurance to protect them financially if the worst happens. If you’re a couple, especially if you have children, life insurance can help protect your family

If you and your partner each take out your own policies, your dependents will potentially receive two pay outs – one for each of you if you were to both pass away within the term of your policies. Whereas a joint policy would only pay out once, depending on the policy you choose. 

A ‘first death’ joint life insurance policy will pay out on the death of one of the policyholders within the stated term, meaning the other policy holder will no longer have life insurance. ‘Second death’ joint life insurance only pays out once both policyholders have passed away.

Insurers will want to assess your level of risk when you get your life insurance and will use this to calculate your premiums. This may include any pre-existing medical conditions you live with, and your family’s medical history

It’s important that you answer any questions honestly when you get your life insurance quote, so you know your cover is valid and you aren’t left uninsured when you need it most.

If you miss your life insurance payment or stop paying, you policy may lapse and you’ll no longer be covered or receive any return from your previous payments. 

If you miss a payment, your insurer may offer you a ‘grace period’ of time to pay the missed premium before your policy lapses. It’s important to check with your life insurance provider the specifics of your policy, so you aren’t caught out unexpectedly and left uninsured. 

If you’re not able to work because of an illness or injury, which means you can’t afford your monthly life insurance payments, a waiver of premium could mean you’ll still be covered during this time.

This waiver will need to be added to your policy as an additional level of cover and it will need to be taken out from the start of your life insurance policy.

With level term life insurance, both your sum insured and your premiums are fixed throughout your policy’s term. This means the price you pay won’t increase with inflation, but neither will your pay out.

If you’ve taken out level term life insurance for financial support for your loved ones as a lump sum when you die, there’s usually no income or capital gains tax to pay on the proceeds of your policy. But if the total value of your estate is more than £325,000, inheritance tax (IHT) will be deducted from your insurance pay out at a rate of 40%. You can avoid paying inheritance tax by writing your policy ‘in trust.’  For more information on life insurance and tax deductions, click here.

You can choose to cancel your level term life insurance policy at any time, but most policies won’t give your money back if you cancel before the end of the term.

If you live with a pre-existing medical condition, you should still be able to get level term life insurance. If you have a more complex condition and you’re struggling to get a price online, a broker or adviser like our partner LifeSearch can help you find the right provider for your needs.

You may need to share additional medical information (like copies of tests) with the provider, to help them understand your level of risk because of your condition. It’s important to let your insurer know of your medical condition – while you can end up paying more for your life insurance, you’ll have a policy that covers you against the unexpected.

Putting your level term policy inside a legal entity called a trust is important and often recommended for two reasons:

  • It prevents the proceeds of a pay out becoming liable to inheritance tax

  • It prevents the pay out falling within your estate and becoming part of a process called probate – the distribution of your estate following your death

Putting your policy in trust also lets you name the people you want to receive your life insurance pay out, known as your trustees.

You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.

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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.

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