Life Insurance Guide | Insurance Help Product Information | Level Term Assurance

The simplest form of term assurance is level term assurance. This contract provides that the life office will only pay out the sum assured if the life assured dies during the term of the policy, i.e. before the expiry date.

The sum assured does not vary during the term of the policy and once it has expired, the policy has no value. This is the cheapest form of life assurance, since the cover is only temporary and there is normally no surrender or cash-in value available on early termination. If a premium is unpaid, the policy will lapse at the expiry of the days of grace.