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Term insurance

On this page:

  • What is Term Insurance?
  • Factors affecting your premium
  • Types of terms available
  • Next Steps

What is Term Insurance?

Term insurance gives you life cover over a pre-agreed period of time. If you die during this period, your policy pays out a lump sum. This type of cover is useful for providing financial security for your dependents.

Factors affecting your term insurance premiums

  • your age
  • your health
  • how long you want the cover for
  • the level of cover you need
  • whether you smoke

You can usually set up single or joint life policies.

Types of term insurance available

  • level term insurance
    Your life cover stays the same and your premiums are fixed unless it is reviewed. Reviewable policies tend to be cheaper to buy.
  • decreasing term insurance 
    Life cover decreases during the term of the policy, which reduces the cash payment the longer the term runs. This type of insurance is useful if you need to cover a reducing debt such as a repayment mortgage. It is usually less expensive than a level term assurance.
  • family income benefit
    This type of policy is useful for providing financial security to your dependents. Instead of a lump sum, regular payments are made to them if you die.
  • increasing term insurance
    The premiums and cover will increase during the term of the policy. This can be used to keep in line with inflation or to cover an increasing debt.

Next steps

If you have a policy, want to buy some cover, or just want more information: