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Stories of celebrities insuring their body parts aren’t exactly uncommon. Insurers have had to estimate the value of everything from David Beckham’s legs to Dolly Parton’s breasts, and celebrity duo Ant and Dec have even gone as far as to insure each other’s lives.

The ‘I’m a celebrity...’ hosts, obviously not exactly confident in their own solo performances, have allegedly taken out cover that would pay each of them £2 million in the event of the other’s death.

Most couples might not regard themselves as creatively so reliant upon their partners, but when it comes to financial matters any serious accident could have a major impact.

MoneyExpert.com takes a look at fixed term life assurance for those making sensible preparations for the future.

Jargon busting

The language surrounding life assurance can be a bit confusing, but level term life insurance simply offers what the name suggests. The ‘term’ refers to a set period in which your insurer will pay out if you make a claim, and it is ‘level’ because the value they pay won’t change according to when the payment is made. An example would be for a fixed amount of £100,000 to be paid out if you were to die in the next 20 years. Typically people take out when they’re taking out a mortgage or other major debt.

Level term assurance shouldn’t be confused with decreasing term assurance where the value paid out decreases over time.

Is it for me?

With all life assurance products you need to ask yourself what the financial impact of your death would be on those closest to you. If your death would have little financial impact then you may not need a policy, but if you have a family that would struggle to cope with mortgage payments and other costs then you should definitely consider taking one out.

Breaking the bank

With many a Hollywood B-movie depicting the multi-millionaire bumped off for a life insurance payout it’s easy to assume that taking out a policy is only for the very wealthy.

The cost of life insurance, however, depends entirely on the policy you choose, and you could even find cover for as little as £5 a month. Of course, you will need to consider your circumstances carefully – there’s little point in taking out a policy that costs little but wouldn’t cover your commitments in the worst case scenario.

Counting the cost

So what are the key factors when choosing a policy? First and foremost, the cost of the policy will depend on the amount it pays out. The amount you need will depend on your circumstances. It will need to cover any outstanding debts including your mortgage - unless you have a separate mortgage assurance policy - and ensure a good standard of living for your dependents.

You’ll also need to consider the length of the term – the longer it is the more costly the policy will be. A policy covering children should last until they at least finish full time education, and that covering a partner, until they at least reach pensionable age.

Finally, the amount you pay will depend on the likelihood of death – factors such as age, health, weather you’re a smoker and if you have a risky occupation will all have an impact. Whatever your situation it’s vital that you disclose all relevant information. If you don’t you could find your policy invalidated.

Click here to compare life assurance polices