Term Life Insurance, also referred to as simply life Insurance or Term Insurance gets its name from the fact that it provides protection for a set term of years.
This form of term life insurance is often linked to a mortgage to ensure that the outstanding debt is repaid in the event of one of the parties death during the term and is often set up with a term of between 5 to 40 years.
However, there are other forms of term life insurance including:
- Decreasing Term Assurance where the amount of life insurance cover reduces throughout the term of the policy. This type of insurance is often used for repayment mortgages where the debt is also reducing over the term of the mortgage.
- Level Term Assurance where the amount of life insurance cover stays the same throughout the entire term. This type of cover is often used for interest only mortgages or to protect the family should a spouse / partner die when the children are still dependant upon their parents.
- Increasing Term Assurance or Indexed Term Assurance where the sum assured increases over time to take account of inflation. This is often a better solution for Family Protection needs.
- Family Income Benefit where rather than providing a lump sum on the death of a spouse or partner the policy will pay out a monthly income to help replace the income to the household which has been lost.
These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
If you also wish to have cover in the event of a major illness then critical illness cover may be a suitable solution. If you require life insurance advice on solutions for your protection needs why not call us.
If you already have some term life insurance, you may feel that you are paying too much on your premiums. In recent years the cost of life insurance has fallen considerably.
To find out how much suitable cover would cost or how much you could be saving on your existing premiums why not request some life insurance advice by either calling us or completing our short Protection Enquiry Form.