Term life insurance - bringing some certainty to life
There are two basic kinds of life insurance: term life insurance and whole-of-life insurance. The clue is in the name:
Term life insurance is designed to pay out if you die within a certain term. It's basically the simplest (and cheapest) form of life insurance.
Whole-of-life insurance is designed to pay out whenever you die. This tends to be more expensive than term life insurance.
Why choose term life insurance?
Life doesn't stay the same forever. Your finances today probably don't look anything like they did 15 years ago - or like they'll look in 2026!
That's one reason so many people see term life insurance as a cost-effective way of protecting their dependants for the foreseeable future, whether that means 5 years, 10 years, or 25 years.
Think about the milestones in your life
Once you've passed one of those major milestones in your life, you can always look at taking out a new policy that reflects your situation as it stands then, not as it stands today.
With term life insurance, it's up to you to decide how long you want the policy to run for. Just bear in mind that you won't receive anything if you die after that term is up. That's why term life insurance tends to be cheaper than whole-of-life insurance.
On the other hand, some people will choose whole-of-life insurance to make sure they get a pay-out upon your death, however far away that is.
What kinds of term life insurance are there?
There's more than one kind of term life insurance policy - at Think Insure, we specialise in offering access to both level-term and decreasing-term cover.
Level term cover
A level term insurance policy means fixed payments for a fixed term - and provides a fixed lump sum in the event of your death. So it can make your budgeting a lot simpler, since you know exactly how much you'll have to pay out every month, and how much your dependants can expect to receive in the event of your death.
Decreasing term cover / mortgage term cover
With decreasing term cover, your dependants will receive more if you die earlier in the policy and less if you die later on. This explains why it's also called mortgage term cover - a lot of people use this sort of policy to make sure their dependants can pay off the mortgage upon their death.
Which is the best kind of term life insurance?
This is a question of which one is more suitable for you.
When it comes to choosing a life insurance policy, this is just one of the questions you'll need to look at. You'll also need to think about how much cover you need and how long you'll need it for. And of course, how much you can afford to pay per month!
Our life insurance team can answer your questions and help you find the deal that's right for you.
