Term life insurance gives you cover when you need it

There are so many different forms of life insurance on offer that you’d be forgiven for being confused when trying to find the right policy for you. The initial choice, between term life insurance and whole life insurance is often decided by the cost. With whole life insurance costing around eight times more than term life insurance, many people simply couldn’t afford life insurance for their whole life.

That’s not the only reason that term life insurance is the most popular form of life insurance on offer in the UK. Many other customers prefer term life insurance because of its simplicity, the number of choices within the format and the fact that term life insurance provides customers with the cover they need, when they need it.

If you look at your whole life, and think about the period when you will most need life insurance, it will be the period of your greatest financial responsibility. It won’t be when you’re ten years old, and it’s unlikely to be when your 80, having paid off your home and drawing on your pension.

The period you will most need life insurance is the period between buying your first home, having your children, and the point when the children have moved out and you’ve paid off the mortgage. For many people this twenty five to thirty year spell is their period of greatest financial responsibility, and is the period of time when a customer most needs to have life insurance.

Term life insurance offers the perfect solution for that, and gives customers the insurance they need, over the term they need. The options for payout are an added bonus.

Customers looking to save even more money can opt against a flat rate payout, the traditional form which sees an insurance firm pay out the same to a customer’s family whether they died a week into the policy, or a week before the end of it, instead opting for a policy which decreases over time.

This means a customer’s family will receive less, the further through a policy a customer gets, although this figure also reduces in line with the reducing financial responsibility as children get older and more and more of the mortgage is paid off.

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