Are there any alternatives?
When it comes to choosing types of life insurance, you’ll need to think about what the money will actually be used for because this could impact the type of policy you take out. Level term insurance gives you the security of a fixed sum of money and as a result of, premiums will usually be a bit higher compared to a decreasing term policy.
Decreasing term life insurance is similar to level term policies in that you choose the length of time the policy runs for. However with a decreasing term policy, the amount of money paid out gets smaller as the policy matures. It’s designed for people whose financial commitments will reduce over time, for example, if you’re repaying a mortgage, the amount of money needed to cover the mortgage will naturally decrease as you pay it off. As a result with decreasing term policies, the premiums tend to be lower to reflect that the overall pay out decreases over time.
Another option is a whole of life policy – these tend to have higher premiums than decreasing or level term payments. That’s because (as the name implies) the policy is guaranteed to pay out whenever you die – so long as you continue to keep up with your policy premiums. For more information on whole of life policies, call our advisors at Life Search on 0800 072 1141 (Mon-Fri 8am - 8pm Sat 9am - 2.30pm). They're really friendly and just at the end of the phone to help you figure out just what you need.