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.