The most common type of life insurance is term life insurance, which is easy to get and cheap. There are more than 150 companies in the UK that offer term life insurance, so it's important to look around and compare products.
Term life insurance is cheap because most people will live longer than the length of the policy. This means that the insurance company faces less financial risk, and the customer pays less for insurance.
It can be the only kind of life insurance that many people need. Most term life insurance policies are either renewable or non-renewable. A renewable policy can be renewed without health exams, but a non-renewable policy requires the insured to reapply and re-qualify every few years.
When you choose term life insurance, one of the most important things to think about is how long the policy will last. Term life insurance is very flexible because you can choose the amount of coverage and the length of the policy, which can be anywhere from one to thirty years or even longer. In the UK, a life insurance policy lasts on average for fifteen years.
From a cost-only perspective, a shorter term is usually cheaper, which is why many people choose a five- or ten-year term. Short-term insurance costs less because the insurance company is less likely to have to pay out.
Depending on your situation, a term life insurance policy can cost as little as 1 pound per day. However, most policies cost between 8 and 20 pounds per week.
It is especially helpful for short-term needs, like paying off a mortgage or putting your children through college. For example, if you have a thirty-year mortgage, you should choose a term of at least thirty years. This will make sure that your payments are safe for the whole thirty years.
When you buy term life insurance, you should think about how old you are. If you are in your 20s or 30s, a longer term like 20 years might be better. If you are close to retirement age, a shorter term like 10 years might be better. If you smoke and are trying to quit, you should choose a shorter term.
Term life insurance is also less expensive if you buy it when you are younger and healthier. If you wait until you are in your 50s or 60s, it might be harder and cost more to get. Most older people have more health problems, and some of them may have had health problems before they got older.
Men also pay a little bit more for term life insurance than women do, because women live longer than men. According to the Office for National Statistics (ONS), life expectancy in the UK is higher than it has ever been, at around 77 for men and 81 for women.
Don't wait any longer if you've been thinking about getting term life insurance. It's cheap and easy to get, and most of us need it because the average cost of a funeral in the UK is now around £1300.
