Term Life Insurance UK
A summary of the benefits and drawbacks of term insurance policies.
With term life insurance UK customers are entering the most competitive of the life markets- and that means plenty of deals on offer! The advantages include usually simple low payments; the main disadvantage is that these policies have no redemption value.
When searching the market, here are a few things about term life insurance UK buyers should weigh up.
- Initial premiums are usually lower than those for whole-of-life insurance, allowing you to buy a higher level of coverage when you’re young, which might be when you need the cover most.
- It’s good for covering costs like mortgages which will disappear in time.
- It’s easy to buy: you usually don’t need a financial adviser’s assistance (whereas for a whole of life policy, you most certainly do!)
But when buying term life insurance UK buyers are warned of some disadvantages too:
- Coverage will terminate at the end of the term, and may become too expensive to continue. A new policy may require a medical examination and lead to increased costs; and even a renewable policy may be expensive.
- There’s no cash-in value if you decide you don’t want the policy any more.
- And if you do survive the policy, in almost all cases there is no cash benefit at the end.