Term Life Insurance explaination

Term life insurance pays a tax free lump sum in the event of death within a specified period of

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What is Term Life Insurance?: Term Life Insurance is a category of insurance that will payout a lump sum to you or your family if you die or fall terminally ill during the term of the policy.
What is Mortgage Life Insurance?: Mortgage Life Insurance is also commonly known as Mortgage Protection Insurance.
Complaints about a Life Insurance Adviser: All the Life Insurance Adviser aqre now regulated by the Financial Services Authority.
Complaints about a Life Insurance Adviser: If the Life Insurance Adviser is regulated by the Financial Services Authority then he will have provided you with his Terms and Conditions at the very first opportunity.

your choice (known as the 'term'). Fixed monthly or annual premiums are paid for the duration of the term. Most terms are typically 25 years in line with one's mortgage or the time period associated with other forms of borrowing. There is no investment value in a term life insurance policy, hence if no claim has been made there is no maturity value payable at the end of the term.

It is the simplest and cheapest form of life insurance. A few pounds per month can provide cover for a payout of tens of thousands of pounds. You are covered for as long as you continue to pay the monthly premiums. If you stop paying the premiums, the policy terminates.

Different types of cover are available:

'level' - a lump sum is payable on the event of death. This lump sum remains constant throughout the period of the life insurance term.

'decreasing' - a lump sum is payable on the event of death. This lump sum decreases by a fixed amount during the period of the term, decreasing to nil by the end of the ( secured loans ) insured period. This form of cover is usually used for mortgages or other loans where the amount owed decreases year on year.

Single and joint life plans are available. A single life plan insures one life. A joint life first death plan insures two lives but only pays on the first death.

Premiums typically depend on the sum to be insured, the period of insurance ( personal loans ) cover, your age, your sex and whether you smoke or not. A non-smoker is usually defined as someone who has not smoked for at least twelve months. Premiums for women are generally lower as on average they tend to live longer.

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