A level-term policy pays out a lump sum if you die within the speci ed term. The amount you’re covered for remains level throughout the term – hence the name. The monthly or annual premiums you pay usually stay the same, too.
Level-term policies can be a good option for family protection, where you want to leave a lump sum that your family can invest to live on after you’ve gone. It can also be a good option if you need a speci ed amount of cover for a certain length of time, for example, to cover an interest-only mortgage that’s not covered by an endowment policy.