There are two principal types of life insurance: term life and whole life. We’re looking at what they are, what they’re used for, and whether they are right kind for you.
The ‘term’ of ‘term life insurance’ usually refers to the amount of time the policy runs for. Which is defined by you and your insurer when the policy is taken out. Depending on what you want your payout to be put towards, the length of your term could be longer or shorter. However, there will be a maximum possible length depending on who the insurer is.
These policies are designed to pay out if you die during their lifetimes. However, if you die after the term has expired, then your provider will not pay out.
The advantage of term life insurance over whole life – which insures you for however long you live – is that premiums are usually cheaper. The different types of term policies are designed to be used for specific ends.
Do I Need Term Life Cover?
If you have started to consider buying term life insurance then in all likelihood you have assessed your financial situation. What you would leave for your loved ones should you no longer be around.
You should consider the amount of money you are likely to leave. Compare it to the ongoing rise of the cost of living that will continue after you’ve gone. You should also check your employer’s death-in-service policy. See how much it would leave your loved ones, as well as any savings, investments, and saleable assets you may have. Would term life insurance be right for you?
Then compare that to your financial obligations such as mortgage repayments, day-to-day living expenses, and contracts.
It is possible that you discover that your loved one’s ability to finance life as they know it would change dramatically without your income, even if you are well-off. If you find yourself in this position then buying term life insurance may become a serious consideration.
You can find out more information on term life insurance in our detailed guide, here.
Let’s find out if a joint cover is right for you. We’ve created a free custom form to get you a quote. We’ll help you find out how much cover you could get & more importantly how much it could cost.
Click here and answer a few simple questions. We’ll provide you with quotes tailored to suit your needs.