Does your life insurance pay out stay the same no matter when you die?

This depends on the life insurance policy you buy. If you buy level term insurance, the pay-out is the same whether you die in year one or in the 25th year.

Decreasing term insurance is a cheaper option, because the pay-out gradually becomes smaller over the years. This type of decreasing level policy is often linked to repayment mortgages because the amount you owe the lender also decreases over time.

Family income benefit is another option. It pays an income much like a monthly salary rather than a lump sum from the time of the claim until the end of the term you agreed with the insurer. Family income benefit is even cheaper than level or decreasing term life insurance because the amount paid out by the insurer is expected to be less overall.