Taking out a life insurance policy is one of the best ways you can protect your family and your estate in the event of your death, but you should be aware of the various types of life insurance available to make sure you’re getting the best cover. To enjoy the greatest financial security from your life cover, you may favour a level life insurance policy, as these can guarantee fixed premiums until you reach 65. Because life insurance is a long-term protection strategy, this security can be highly beneficial to safeguard your payments against the ever-changing economy, ensuring you won’t face steeper premiums in times of financial hardship. This could potentially lead to you saving thousands when compared to less fixed policies, and policies that charge higher premiums the older you are. Level life insurance may not be ideal for everyone, of course, especially if you are only expecting to hold a life insurance policy for a shorter period of time. In this case, stepped life insurance may be better suited to you, as premiums are likely to be cheaper in the early years – however, these will usually increase as you get older. Level life insurance policies switch to stepped life insurance after age 65, which means those who take out life insurance in their 20s or 30s could enjoy many years of savings when choosing this option, not to mention lower premiums compared to policyholders in their 50s and 60s who will be deemed to be at higher risk. However, your choices don’t end there, with the option to choose the term (duration) of your life insurance too. You can find some policies lasting for as little as 12 months, which can be renewed each year, up to five-year, ten-year, fifteen-year and twenty-year term life insurance, depending on your needs. Bear in mind that, as with all types of insurance, shorter terms usually lead to higher premiums. If you’re drawn to level life insurance for its promise of fixed premiums, it pays to do your research into precisely which companies offer this guarantee – as not all level life insurance policies live up to this ideal. Generally speaking, even if your provider does guarantee fixed premiums for the duration of your term, these may be expected to increase in the event that your personal circumstances and liability change – for example, if you are diagnosed with a serious illness.

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