Term Life Insurance

Level Term Life Insurance

Term Life Insurance is one of the cheapest, most basic form of life insurance.

Term life insurance pays a lump sum in the event of death within a specified period of your choice (known as the 'term').

Premiums are normally paid monthly by direct debit although some policies allow annual payments.

Term life insurance is generally used for protecting an interest only mortgage or for family protection.

There is no investment element with this form of life insurance, as such if no claim has been made there is no maturity value payable at the end of the term.

Term life insurance is the simplest form of life insurance. You are covered for as long as you pay the monthly premiums. If you stop paying the premiums, the life insurance cover stops.

Premiums will depend on the level of cover, the term of the insurance, your sex and whether you smoke or not. A non-smoker is usually defined as someone who hasn't used a tobacco product for at least 12 months.

The most common ways for term life insurance policies to be arranged are on a single life basis or as a joint life first death arrangement.

Additional options like critical illness insurance and waiver of premium can be added to increase the level of cover, although this in turn increases the premiums.

If you do add on critical illness insurance, the plan will pay out once on diagnosis of a qualifying critical illness or if you die during the term of the policy.