What is level term life insurance?
Learn more about level term life insurance - also called Family Protection. And find out what your options are with Tesco Life Insurance.
Published: 11 February 2026
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What is life insurance?
Life insurance is cover that pays out a cash lump sum if:
- you die during the term of the policyyou die during the term of the policy
or
- you become terminally ill and aren’t expected to live longer than a yearyou become terminally ill and aren’t expected to live longer than a year
It’s designed to give your family some financial support in case you can’t be around to look after them. For example, the lump sum could help to pay off the mortgage or cover the cost of their living expenses.
Understanding your options with Tesco Life Insurance
With Tesco Life Insurance, you can choose from 2 types of life insurance policy:
1. Level term life insurance - also known as Family Protection
2. Decreasing term life insurance - also known as Mortgage Protection
Both are term life insurance policies. That means your cover lasts as long as the term - or length - of the policy. But the lump sum these policies pay out can be used for different things.
You can learn more about the basics of life insurance in our beginner’s guide - What is life insurance?
We explain some of the key terms in our life insurance glossary.
What is level term life insurance?
Level term life insurance provides a fixed amount of cover for a set amount of time.
It can help to support your family financially after you’ve gone, especially if you have children. For example, it could be used to help with:
- their living coststheir living costs
- your funeral expensesyour funeral expenses
- getting your kids through universitygetting your kids through university
Because of the way it works, level term life insurance is also called Family Protection.
How does level term life insurance work?
With level term life insurance, you choose the following when you take out your policy:
- the policy term - how long you want cover forthe policy term - how long you want cover for
- the cover amount - the lump sum you want to leave to your loved onesthe cover amount - the lump sum you want to leave to your loved ones
Your monthly premiums and cover amount stay the same throughout the policy term. So, if you’re paying £20 a month at the start, you’ll still be paying £20 a month at the end.
Bear in mind, life insurance doesn’t have a cash-in value. If your payments stop, so does your cover, and you won’t get your money back. The policy only pays once, after a successful claim, and it ends after that.
Choosing a policy term and cover amount
With Tesco Life Insurance, you can choose a policy term from 5 to 50 years.
When deciding on the length of cover, think about how long you’ll need to support your family financially. For example:
- if you have a partner to support, and when they retireif you have a partner to support, and when they retire
- if you have children, how old they are, and when they’re likely to be workingif you have children, how old they are, and when they’re likely to be working
To help you work out how much cover you might need, you can follow our guide - How much life insurance do I need?
Should I get a single or joint level term policy?
You can take out level term life insurance as a single or joint policy. A single policy covers 1 person on 1 policy, while a joint policy covers 2 people on the same policy.
You pay 1 monthly premium with both types of policy.
A joint policy can work out cheaper. However, it only pays out once - to the surviving partner - and ends after that. If you wanted cover to continue, you’d need to take out a new single policy.
If you and your partner have separate policies, the surviving partner’s cover will continue after the first one dies.
How to decide on a single or joint policy
To help you decide on a single or joint policy, think about:
- How long you want protection for - Will you still need cover if your partner dies? If so, a single policy might be more suitable for you.How long you want protection for - Will you still need cover if your partner dies? If so, a single policy might be more suitable for you.
- How much you can afford each month - A joint life insurance policy might be cheaper. Also, there’s only 1 monthly premium to pay for both of you.How much you can afford each month - A joint life insurance policy might be cheaper. Also, there’s only 1 monthly premium to pay for both of you.
- How much cover you need - Taking out 2 single policies means you can choose different amounts of cover. With a joint policy, you and your partner have the same level of cover.How much cover you need - Taking out 2 single policies means you can choose different amounts of cover. With a joint policy, you and your partner have the same level of cover.
- If you have dependants - If you have children, or other dependants, a single policy might be better for you. That’s because a joint policy only pays out to your partner.If you have dependants - If you have children, or other dependants, a single policy might be better for you. That’s because a joint policy only pays out to your partner.
- If you have a joint mortgage - your lender might need you to have life insurance when you take out a mortgage with them. You can find out more in our guide - Do you need life insurance for a mortgage?If you have a joint mortgage - your lender might need you to have life insurance when you take out a mortgage with them. You can find out more in our guide - Do you need life insurance for a mortgage?
How much does level term life insurance cost?
There isn’t an average monthly cost for life insurance. The price you’ll pay depends on a number of things, like:
- the type of policythe type of policy
- the length of the policy - known as the policy termthe length of the policy - known as the policy term
- how much you’re covered for - known as the cover amounthow much you’re covered for - known as the cover amount
Your insurer will also want to know a few things about you to work out the cost. These include your:
- ageage
- lifestylelifestyle
- healthhealth
- family medical historyfamily medical history
- occupationoccupation
With Tesco Life Insurance:
- you can choose level cover of up to £5millionyou can choose level cover of up to £5million
- cover starts from only £5 a monthcover starts from only £5 a month
- you’ll get a discount with your Clubcardyou’ll get a discount with your Clubcard
Level term vs decreasing term life insurance
Level term and decreasing term life insurance are both term life insurance policies. So they both provide cover for a set amount of time - known as the term of the policy.
You choose from both options with Tesco Life Insurance.
- Family Protection - a level term life insurance policyFamily Protection - a level term life insurance policy
- Mortgage Protection - a decreasing term life insurance policyMortgage Protection - a decreasing term life insurance policy
However, there are some key differences to be aware of, as their names suggest.
The cover amount
With level term life insurance, the amount you’re covered for will stay the same throughout the policy term.
because this type of policy is designed to help pay off a large loan, where the balance goes down over time.
What you’re covered for
Level term life insurance can be used to help with things like:
- monthly mortgage repaymentsmonthly mortgage repayments
- living expensesliving expenses
- childcare or higher educationchildcare or higher education
Decreasing term life insurance can only be used to help pay off:
- a repayment mortgagea repayment mortgage
or
- a large loan or other long-term debt that goes down over timea large loan or other long-term debt that goes down over time
You can learn more about decreasing term cover in our guide - What is decreasing term life insurance?
Remember, your loved ones will only get a payout if their claim’s successful - no matter which policy you have.
Can I have both level and decreasing term life insurance?
Yes, you can have more than one type of life insurance policy at the same time. For example, you might want to take out the following cover in case you die:
- Decreasing term - to help pay off a repayment mortgage or other loan, so your family aren’t left to deal with the debtDecreasing term - to help pay off a repayment mortgage or other loan, so your family aren’t left to deal with the debt
- Level term - to help your family with living costs and other expenses, if you’re not around to look after themLevel term - to help your family with living costs and other expenses, if you’re not around to look after them
You can learn more about having more than one policy in our guide - Can you have more than one life insurance policy?
Why get Tesco Life Insurance?
At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.
- Clubcard Prices - Save on Tesco Life Insurance with your Clubcard.Clubcard Prices - Save on Tesco Life Insurance with your Clubcard.
- Your Big Win - Get a £100 Tesco gift card after you’ve paid 6 months’ premiums. T&Cs apply.Your Big Win - Get a £100 Tesco gift card after you’ve paid 6 months’ premiums. T&Cs apply.
- Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco.Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco. T&Cs apply.
As well as your Tesco benefits, you’ll also get access to health and wellbeing services with the Aviva DigiCare+ app, provided by Square Health and other selected partners.
Tesco Life Insurance is provided and administered by Aviva, who have a 5-star rating from Defaqto for life insurance and pay out on 98.8% of claims.*
*Aviva 2025 Claims report, covering claims made across all life insurance policies in 2024.
Important information
About Tesco Life Insurance
Tesco Life Insurance is arranged, administered and underwritten by Aviva Life & Pensions UK Limited.
Tesco Personal Finance Ltd acts as an introducer to Aviva Life & Pensions UK Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of the Association of British Insurers. Firm Reference Number 185896.
Aviva Life & Pensions UK Limited. Registered in England & Wales No. 3253947. Registered Office: Aviva, Wellington Row, York, YO90 1WR. Tesco Personal Finance Ltd and Aviva Life & Pensions UK Limited. are not part of the same corporate group.
About Tesco Insurance
Tesco Insurance is a trading name of Tesco Personal Finance Ltd, Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ (registered in Scotland, no SC173199) which is authorised and regulated by the Financial Conduct Authority (register no. 186022).
Aviva DigiCare+ app
With the Aviva DigiCare+ app, you can start using a range of health and wellbeing services when you take out your policy.
Members of your family can use it too, as long as they're eligible.
The Aviva DigiCare+ app is provided by Square Health. The services are provided by Square Health and other selected partners.
You'll find full details about the services in the app, along with the terms and conditions, residency restrictions and privacy policy.
Aviva DigiCare+ is a non-contractual benefit that could be changed or withdrawn by Aviva at any time. So, it won't appear in any contract you've signed, or in any terms and conditions.
Life Insurance policy booklets
Please check the policy documents to make sure the cover you’ve chosen meets your needs.
The policy booklet and product information documents tell you about the benefits, limitations and exclusions that’ll apply to your cover.
The Big Win - £100 Tesco Gift Card
Terms and conditions
- To qualify for a £100 Tesco Gift card, you must have a current Tesco Life Insurance policy and have paid 6 months' premiums.To qualify for a £100 Tesco Gift card, you must have a current Tesco Life Insurance policy and have paid 6 months' premiums.
- We will only issue one gift card per current Tesco Life Insurance policy irrespective of the number of people covered under that policy.We will only issue one gift card per current Tesco Life Insurance policy irrespective of the number of people covered under that policy.
- We limit the number of Tesco Gift Cards you'll receive to one per person even if you hold multiple current Tesco Life Insurance policies with us.We limit the number of Tesco Gift Cards you'll receive to one per person even if you hold multiple current Tesco Life Insurance policies with us.
- We'll send your Tesco Gift Card to the email address you used when applying for your Tesco Life Insurance policy.We'll send your Tesco Gift Card to the email address you used when applying for your Tesco Life Insurance policy.
- Tesco Gift Cards should be treated like cash. Lost or stolen cards can’t be replaced.Tesco Gift Cards should be treated like cash. Lost or stolen cards can’t be replaced.
- You'll get an e-gift card, which can be used in any UK Tesco store. Please note, your Tesco Gift Card can’t be used in Tesco Petrol Stations.You'll get an e-gift card, which can be used in any UK Tesco store. Please note, your Tesco Gift Card can’t be used in Tesco Petrol Stations.
- Tesco’s change of mind policy does not apply to gift cards. If you change your mind, you can’t return your Tesco Gift Card for a refund. Your legal rights are not affected.Tesco’s change of mind policy does not apply to gift cards. If you change your mind, you can’t return your Tesco Gift Card for a refund. Your legal rights are not affected.
- Your Tesco Gift Card and balance will expire five years after the date you activated your card, or the date you last used your card, whichever comes later.Your Tesco Gift Card and balance will expire five years after the date you activated your card, or the date you last used your card, whichever comes later.
- Damaged, altered or cancelled cards won’t be accepted as payment.Damaged, altered or cancelled cards won’t be accepted as payment.
- Your Tesco Gift Card can’t be used to buy another Tesco Gift Card, or to buy other gift cards sold in-store or online at tescogiftcards.com. Your Tesco Gift Card can’t be used to buy another Tesco Gift Card, or to buy other gift cards sold in-store or online at tescogiftcards.com.
- We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.
Little Life Helps - Tesco shopping benefits
Terms and conditions
- You’ll get money-off coupons to spend on your Tesco shopping for one year, starting from the date you get your first coupon.You’ll get money-off coupons to spend on your Tesco shopping for one year, starting from the date you get your first coupon.
- You’ll need to have the Tesco app on your mobile phone and be opted in to marketing.You’ll need to have the Tesco app on your mobile phone and be opted in to marketing.
- The coupons will appear automatically in your Tesco app.The coupons will appear automatically in your Tesco app.
- You'll get up to 5 Tesco coupons throughout the year, which could include £15 off your total shop and £5 off fruit & veg.You'll get up to 5 Tesco coupons throughout the year, which could include £15 off your total shop and £5 off fruit & veg.
- We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.
Tesco Life Insurance is provided, administered and underwritten by Aviva Life & Pensions UK Limited.
Aviva have a 5-star rating for life insurance from Defaqto. And they pay out on 98.8% of life insurance claims*.
*Aviva UK individual claims report 2025, based on claims paid in 2024.
Learn more about Life Insurance
Find the right cover to give financial support to your family after you’ve gone. Tesco Life Insurance comes with Clubcard Prices, some great Tesco shopping benefits and Aviva DigiCare+.