Term life Insurance UK
What is term life insurance UK?
Term life insurance UK is a form of life insurance offered in the United Kingdom, and gives customers a policy which protects their financial responsibilities, and gives them total peace of mind should the worst happen. Term life insurance UK will pay out a lump sum payment to the family of a customer who unfortunately loses their life while in possession of a valid policy.
Term life insurance UK is the more popular of the two main different types of life insurance offered in the United Kingdom, and is also the cheapest. Term life insurance UK is life insurance offered over a certain term, which is often offered alongside a mortgage, for the term of the mortgage.
It can also be offered to a customer over any other term, although is rarely offered past a customer’s 60th birthday, meaning the majority of customers outlive their policy and never receive a payment.
Whole life insurance
Those customers who want a return on investment should look at whole life insurance instead. Whole life insurance is the alternative to term life insurance UK, and offers customers with life insurance for their whole life. The policies cost around 8 times more however, as the insurer know that they will have to make a payout at some point, so they must recoup at least the payout in premium payments during the lifetime of the customer.
Whole life insurance customers are able to borrow money against their final payout later in life, when they have less need for a payout. This is because their financial responsibilities have vanished, with mortgages being paid off and children having left home and becoming financially independent.
Why should I take out term life insurance UK?
Term life insurance UK provides you with peace of mind that your financial responsibilities will be looked after, even if you are no longer around to meet them. The term of the policy should cover the term of your mortgage, and the term your children depend on you, and should you die, the money left behind will pay off the mortgage, guaranteeing your family somewhere to live, and leave money behind to pay for your children.
There are many other reasons to take out term life insurance UK, and you should consider the financial impact on your family if you died tomorrow and left nothing behind.