No-one likes to spend much time thinking about what’s going to happen when the time comes, but if you want to give your family something to fall back on then adequate insurance should be a vital part of your arrangements. By investing in appropriate cover you can be confident that you’re giving something back, and one of the most cost-effective policies is term life insurance.
This form of insurance covers you for a fixed, pre-arranged period of time, giving your family a lump sum in the event that you die during the policy term. Premiums are normally paid for the life of the policy (usually on a monthly basis but occasionally annually), and you’re only covered for as long as you pay the premiums – if you stop paying, your cover stops too.
But, it’s important to remember that this type of cover doesn’t come with any investment value, so if you don’t make a claim during the policy term (or, in other words, if you don’t die) there’s no maturity value payable at the end of it. This makes it a very cheap form of insurance, because while you’re free to potentially extend or renew your policy at the end of the term, your insurer isn’t likely to have to pay out during that initial period.
Despite the seemingly cut and dry nature of this type of policy, there are some variations that you might be able to find. Some insurers will offer family income benefit instead of a lump sum, for example, so it’s important to do your research to see what would be best. Ultimately the premiums that you have to pay will depend on the length of the term, your age, the amount to be insured and your general health, and as with all types of insurance there are plenty of optional extras that can be included to increase your level of protection (such as critical or terminal illness cover).
This form of life insurance is ideal for people that want an affordable and simple form of insurance that can give their family a lump sum if they die. It can be a huge relief to know that everything is taken care of, and with so many insurers offering this level of cover there’s no reason not to consider it. Take a look around to find the policy that best suits your needs and budget, and you can be confident that you’re doing the best thing you can for your family.