Term life insurance provides cover when you need it
When comparing life insurance policies, you’ll inevitably start to weight up the difference between term and whole life insurance. Whole life insurance offers customers insurance for their whole life, whilst term life insurance offers customers cover for the 25-30 years they are paying off their mortgage and have children at home.
Whole life insurance on paper
On paper you’d pick whole life insurance, until you look at the price, realising it is substantially more expensive. The biggest reason that term life insurance is the most popular form of life insurance offered in the UK is its price, but we also think it’s got other huge advantages.
Cover against disaster
When you buy an insurance policy, you insure against the worst happening, and you almost hope you’ll never have to see a return on your investment. If you have to claim on your home or car insurance it’s because something bad has happened.
Hope you’ll never use it
It’s the same with term life insurance. You buy it, and hope you’ll never have to use it. Customers buy term life insurance to provide them with the protection they need, when they need it the most. Term life insurance provides customers with financial protection at their period of greatest financial responsibility.
No life insurance can be disastrous
Leaving your other half with young children and a new mortgage with no life insurance payout to fall back on would be a disaster for all but the very highest earners, and that’s the main reasons why term life insurance proves so popular.
Once you’ve paid off your mortgage, got savings in the bank and your children have left home and become financially self sufficient then you know that you can relax, and that leaving money behind is not as important.
Term life insurance provides customers with cover when it’s important, and when they have huge mortgage payments that require the income of both halves to meet.