Type of cover in life insurance

Level cover

Life insurance with level cover is also known as Term life insurance. It is a type of insurance where the amount to be paid out in case of death stays the same. If you take out a policy for many years the amount paid out will be the same even if death occurs near the end of the term.

Decreasing cover

With decreasing cover, the amount to be paid out decreases every year by a set percentage. Near the end of the term the amount can be much smaller than at the beginning.