Term life insurance
Term life insurance policies provide cover for a fixed period, or term, which can be taken out for five, ten or twenty years, or longer.
It can offer financial security to your family by paying a one off lump sum if you die during the policy term.
Term life insurance is the most basic form of life insurance. It pays out on the death of the person insured and is primarily used to cover financial responsibilities such as debts, education and mortgages.
Term life insurance advantages:
- If you want to leave a cash sum to your family and/or dependants, or if you want to make sure your mortgage is paid off after you have died, term insurance could be right for you.
- Term life insurance is one of the most affordable and cost effective types of life insurance that can provide high benefit amounts.
Term life insurance disadvantages:
- The policy only pays out if you die during a certain number of years (the term). If you survive beyond the end of the term of the policy, your cover ends and you won’t get any money back.
- There’s no investment element with this form of life insurance, as such if no claim has been made you won’t get any money back at the end of the term.
If you’re not sure whether term life insurance is right for you have a look at our life cover product comparison table or contact us.
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