A simples guide

Introduction to Term Life Insurance

Also known as level term life insurance, this is one of the most common policies you can find in today’s life insurance market. The name is indicative of its nature. Term life insurance provides a specified level of life insurance for a specified period of time. In this article, we’ll take a closer look at what term life insurance is and how you can find the best term life insurance plan for your circumstances.


What is term life insurance?

Term life insurance is a common product taken out to provide life insurance these days. Term life insurance quotes are often sought by parents or homeowners who have a mortgage. By paying a monthly premium, you can make sure that if you do leave love ones behind, their outgoings or mortgage can be covered – giving you peace of mind to everybody involved.

When you take out a level term life insurance policy, you must remember that it’s different than a lifelong plan (often known as whole of life). Your policy will expire on a given date – a date which will be clearly set when you take out your term life insurance plan. It’s then up to you whether you wish to renew the policy, or seek an alternative from elsewhere. In contrast, a lifelong policy would last your whole life and cover you until the day that you die.

A term life insurance policy will pay out the agreed amount upon a policy holder’s death as long as it occurs within the agreed term (or timeframe.) If your policy was to expire before you passed away then unfortunately you don’t receive any payment (but you haven’t died so that’s a good thing!). The good news is that if it looks like this might happen you should be able to speak to your provider and renew your policy so you continue to be covered. 

How much does term life insurance cost?

The cost of a term life insurance policy will vary greatly. There are some factors that will affect the overall price of your policy – and how much each increases or decreases your premium will depend on your underwriter. When applying for a life insurance policy, the insurer will base the price on things such as:

  • Your medical history
  • Your lifestyle
  • Your employment
  • Your family medical history
  • Your age
  • Whether or not you smoke

Because there are so many variables and each insurer assesses those variables differently, the term life insurance quotes you receive can also be drastically different. To find the cheapest term life insurance possible, you need to shop around.

heart in hand

Is term life insurance for over 50s available?

There are options available if you’re seeking over 50s term life insurance. Insurers such as LV and Aviva both offer term insurance for people that are over the age of 50. But what is more common for those that are over 50 is a life insurance policy specifically designed for that age group specifically. It’s called an over 50s policy and works differently to term life insurance so if you think that this type of policy would suit you better then we can help you find a policy by using our over 50s Life comparison service. 


How can you find the best term life insurance?

To find the term life insurance plan that best suits your needs (and your finances), make use of our comparison tservice today. We’ll do all the leg work for you and compare a selection of the UK’s providers. All you need to do is tell us a bit about you and the level of cover you think you’ll need and then choose the policy that suits you and your family the best. You can then get back to enjoying life knowing that should the worst happen, your loved ones are taken care of.