Level life insurance

Level life insurance policies can be written in a single life or joint life basis. A policy on a single life basis is more expensive but is more recommended for family who have small children because a joint policy will only pay once whereas a single life policy will pay twice and the final amount paid will be larger.

Most level life insurance plans have a terminal illness written into them. This means that the plan will pay a cover in the case of terminal diagnosis. A terminal diagnosis means that a person is not expected to live longer than 12 month. However it is important to bear in mind that various life insurance providers treat terminal illnesses differently. Some of them require that the terminal illness be diagnosed no later than 18 months until the termination of the insurance contract whereas other state that only 12 until termination is enough. In any case it is important to read carefully what the insurance contract states.