Term Insurance
Term insurance is a level term life insurance product that pays
out a lump sum when the insurance policyholder dies or becomes
terminally ill. It provides peace of mind to the insurance
policyholder that loved ones left behind after their death will
be financially secure. Term life insurance can be configured to
pay off all existing loans - including the mortgage - and leave
a cash sum in the bank to support your spouse and children. If
you don't want your family to have to cope with financial
pressures during their bereavement, or struggle to find the
funds to pay for your funeral then term insurance is the life
product to have.
Term insurance is different to mortgage insurance It is
important to realise that term insurance is a different life
product to mortgage insurance. Term insurance is a long-term
insurance product that can be taken out over a lifetime of 50
years. During this time the insurance premium remains the same
as does the amount paid out in the event of death or terminal
illness.
Mortgage insurance on the other hand mirrors the life of your
outstanding mortgage loan. The insurance premiums remain the
same throughout the life of the product, but unlike term
insurance the amount paid out upon death or terminal illness
reduces in line with the outstanding mortgage loan. So, if you
were to die at the point that you owe only