Term life insurance offers fabulous value for money
When considering which life insurance policy to take out, or whether to take out life insurance at all, you should bear in mind the exceptional value for money offered by a term life insurance policy.
Term life insurance provides you with a policy over a certain term, which will pay out a huge lump sum payment to your family in the event of your death. There are no other policies like it, and whilst the chances of you dying before the 25 years of paying off your mortgage are slim, you just never know when the worst might happen.
If it does happen, then the financial implications on your family would be huge, and for many families a life insurance payout is the only way they survive and are able to carry on living in the same house, and following the same sort of lifestyle.
For around £10 a month, you can buy over £100,000 worth of life insurance at the age of 25-10, giving your family total peace of mind. If you consider the cost of car insurance, and the level of cover you get from such a policy, you’ll realise that it’s actually great value for money.
Even if you pay £120 a year for 25 years, you’ll only pay around £3000 over the lifetime of the policy for a policy that could potentially be worth £100,000 to your family. That’s not value to be laughed at.
Whole life insurance is a totally different story and insurance companies know that they’ll have to pay out to every whole life insurance customer at some point in their lifetime. They therefore have to charge the customer at least the value of the payout over their lifetime to make any profit on the policy, and that’s why whole life insurance policies are so expensive.
One of the benefits of a whole life insurance policy is the guaranteed return on investment, so you know that eventually the money you’ve spent on the policy will be returned to your family in the form of a payout.