Today everyone knows the importance of being insured, be it car or home insurance or life insurance. There are no guarantees in life and it is critical that you make sure that whatever comes your way you and your family can cope. Far too many people don’t think that term life insurance is important and as a result do not get themselves covered.

What is term life insurance?
Term life insurance or term insurance is a form of insurance that pays out a lump sum when the person taking out the insurance dies. This is normally within a period of time, this period of time is agreed upon by the person covered and is known as the ‘term’. Term insurance also covers illness, and you can add ‘critical illness cover’ to your insurance, however you need to be aware that you will only be paid out once if you are diagnosed with an illness covered by the plan.

Like many insurance plans term insurance payments, or premiums can be paid monthly in instalments, occasionally you can pay annually but you would have to check this with the company you get your insurance from. As there is no investments involved in term insurance you will not get a maturity payment at the end of the term. In fact if you do not die during the length of the term, no payment will be made at all.

There are benefits and drawbacks to life term insurance and the main benefits are:-

• Your family will benefit from a cash lump sum when you die, this could be used to help to pay off a mortgage, or pay for a funeral or living costs for your family.

• This type of life insurance is one of the more reasonably priced insurance schemes, so is affordable for everyone.

The main drawbacks are:

• Term life insurance does work out as being more expensive than some of thedecreasing insurance term plans that people use for mortgage protection.

• As the plan will only pay out if you die or if you are diagnosed with a critical illness. If you are still alive and well by the end of the plan you will not receive anything.

Where do I get life term insurance quotes?

If you would like to pay into a term life insurance plan you will need to find out about the different options available to you and get various quotes. The best way to do this is online. You can simply type “term life insurance” into your chosen search engine and you will be presented with a list of sites that will give you life term insurance quotes.

Term life insurance quotes will vary and you need to decide what it is you are looking for in your insurance plan. If you want a plan that will pay out a set lump sum if you die during the term, regardless of how much you have paid or how long you have been with the plan you need to opt for Level Term assurance.

If you are hoping to pay off a mortgage with your lump sum you need to opt into a decreasing life term insurance plan, this is a plan where the lump sum decreases as the term shortens. This is in the same way that a mortgage decreases over time.

Or perhaps you are looking for the kind of life term insurance that will help out your family for some time after your death. If this is the case, you need to get family income benefit which pays out a fixed amount every month. Do your homework and you will find the life term insurance that is right for you.

Jason Jones is a mortgage advisor with Go Direct. All term life insurance quotes and remortgages arranged through Go Direct’s online mortgage tools, will get you up to £100 cash back of the commission paid by the lender for arranging your mortgage. For more information about term life insurance, and how to get cash back on your visit

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