Term insurance

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:

• see our speedier life insurance claims FAQs
• read through your policy and / or talk to your insurer
• talk to a financial adviser through unbiased.co.uk website or through the British Insurance Brokers' Association (BIBA) website
• shop around to find out how to buy the best type of life cover for you
• go to the Money Advice Service (MAS) website