What does term life insurance mean?
Term life insurance is life insurance that pays out a one-off lump sum if you become ill or die during the policy’s term. You or your family can use the payout for anything like paying off the mortgage, and other debts.
There’s three types of term life insurance: decreasing, level and increasing. Which type of cover is best for you depends on your individual needs.
Term life versus whole of life insurance
Term life insurance is more affordable as the insurer covers you for a certain period of time.
Whole of life insurance guarantees a payout on death. It’s usually more expensive because you’re covered for your entire life.
Why choose term life insurance?
Term life insurance can protect you over a fixed term for large expenses, like a mortgage or a car. It’s also there to protect your family after you’re gone. For example, if you die, your family can continue paying off the mortgage.
Your family can use the payout as they like, it’s not restricted to paying off loans.
What term life insurance should I get?
There are three different types of term life insurance. Each type suits different individual needs and circumstances. For instance, do you have dependants that you want to protect? Do you have debt that needs paying off if you were to die? Answering these questions will help you pick the right type of term life insurance.