Term life insurance rate
What is a term life insurance rate?
Term life insurance rate is one of the two most common forms of life insurance, and provides life insurance for customers over a certain term. That term is usually the length of a mortgage, but can be offered until a certain age, for a set number of years or for any duration deemed suitable by the life insurance company.
Term life insurance rate provides customers with life insurance up until around 60 years old, so the majority of customers outlive their policies. This means that term life insurance rates are typically a lot cheaper than whole life insurance rates, which are offered for the whole life of a customer, regardless of age.
Why do I need term life insurance rate?
Term life insurance rate is important to anyone who has financial responsibilities, like a mortgage or child. Should you die tomorrow, who will look after your financial responsibilities? If the answer is you’re not sure, than you should look at term life insurance rate. Term life insurance provides customers with life insurance at their period of greatest financial responsibility, and will provide your family with a lump sum payment with which to pay off their mortgage, and to look after any children you leave behind, so you have peace of mind that they will be looked after.
Advantages of term life insurance rate
Term life insurance rate is the most popular form of life insurance because it is cheaper than whole life insurance, by around eight times, and because it gives customers cover when they need it the most.
If a customer dies when they are 45, with a large mortgage outstanding and children who are still in school, their family will need a lot more financial support than a 75 year old who has paid off their mortgage, has all of their children moved out and financial independent, and both people still living in the home are drawing pensions.
Whole life insurance may give a customer’s family a payout whenever they die, but often these payouts are not really needed.
Term life insurance rate gives customers complete peace of mind that should the worst happen, their family will be looked after, financially at least, and will make sure that a customer’s family is not left homeless as a result of being unable to afford the mortgage.