Term life insurance policy uk
What is a term life insurance policy uk?
A term life insurance policy uk is one of the two main different types of life insurance, and is the cheaper, and more popular of the two. A term life insurance policy uk gives a customer life insurance over a certain term. Life insurance provides a customer with a lump sum pay out for their family, in the event that they die.
How long does a term life insurance policy uk last for?
A term life insurance policy uk lasts for as long as the term of the insurance, which is usually offered for the duration of a mortgage. A term life insurance policy uk is rarely offered beyond a customers 60th or 70th birthday, meaning the majority of customers outlive their policy, and their families will never get to make a claim.
How is term life insurance policy uk cheaper than whole life insurance?
A term life insurance policy uk is cheaper than whole life insurance because of the number of policies an insurer has to pay out on. Whole life insurance lasts for a customer’s whole life, meaning the insurance company have to pay out to every single policy. Term life insurance customers often outlive their policy, meaning insurers only have to pay out a small percentage of them.
Why would I not buy whole life insurance?
A term life insurance policy uk is often more suitable than whole life insurance, as many customers no longer need a life insurance pay out for their families, once they reach a certain age.
Between the ages of 30 and 60, a customer has their largest financial responsibility, with a mortgage and children to pay for. If they were to die at this point, they would leave behind an outstanding mortgage, and someone else would have to pay to bring up their children. Life insurance provides a way of paying off the mortgage, and supporting the children, even if you are no longer around to earn money to do so for them.
Where can I buy a term life insurance policy uk?
You can buy term life insurance, and whole life insurance from this website. You are able to compare the different life insurance policies, and compare different offerings from different providers, before making an educated decision.