Should you buy cheap life insurance with a short term? It's a common question, and there's a cheap and easy way to answer it. If you have a mortgage or a partner, family, or dependents who would have trouble paying their bills if you died, you need cheap term life insurance.
Cheap term life insurance, also called just "life insurance" or "term life," is a cheap policy that pays out a lump sum when you die. The premiums aren't very expensive, and...
Should you buy cheap life insurance with a short term? It's a common question, and there's a cheap and easy way to answer it. If you have a mortgage or a partner, family, or dependents who would have trouble paying their bills if you died, you need cheap term life insurance.
Cheap term life insurance, also called just "life insurance" or "term life," is a cheap policy that pays out a lump sum when you die. The premiums are very low, and it's easy to get a term life insurance policy. Insurance companies offer two basic types of term life insurance: cheap decreasing term life insurance and cheap level term life insurance.
Cheap term life insurance that goes down
Cheap life insurance with a term that gets shorter is very cheap. A cheap decreasing term life insurance policy will pay off the rest of your mortgage if you die before the policy is up if you pay a few pounds a month. This type of term life insurance is called "decreasing term life insurance" because the amount of coverage goes down as your mortgage balance goes up. The low premium stays the same for the whole life of the policy, which makes it a very cheap way to get life insurance. A cheap term life insurance policy that decreases over time only pays out a lump sum to pay off your mortgage. This type of cheap term life insurance doesn't do anything else for your family after you die.
Level term life insurance for a low price
Level term life insurance isn't as cheap as decreasing term life insurance, but these types of term policies are still cheap overall, with premiums that are only a little bit higher. Because level term policies pay off your mortgage and leave a lump sum to your partner, family, and/or dependents, the premium is not as cheap. A cheap level term life insurance policy has a low premium that stays the same over the life of the policy. The amount of coverage stays the same as well.
Along with your mortgage, it's a good idea to have cheap level term life insurance. But the length of a cheap level term life insurance policy might not match the length of your mortgage. For example, you could buy a separate 10-year level term life insurance policy from any cheap premium life insurance policy that covers your mortgage. The 10-year insurance policy won't have as low-cost premiums because the term is so short, but it will give you more life insurance coverage in case you die.
