Term Life Assurance

What is this?

Term Life Assurance is a policy which is intended to pay a lump sum to a beneficiary on the death of the insured if this occurs within a specified term. The term may be for any period but may be limited by the age of the applicant and the policy will pay out at any time within that period as long as premiums have been paid on time and the policy terms have been complied with.

Who is it for?

Term Life Assurance policies are usually used as a means of paying off the whole of the balance of a debt, such as a mortgage, on the death of one of the borrowers. If a couple take out a mortgage together, based on joint incomes, it would be difficult or impossible for the survivor to maintain payments following the death of the partner. Term Life Assurance policies are usually set for a term that matches or exceeds the term of the mortgage and the sum assured may be level, increasing or reducing.

Who is it not for?

There are age limits beyond which Term Life Assurance is not normally affordable. Also, beyond the age of 75, the term may not exceed 10 years. It is not usually possible to arrange Term Life Assurance for applicants with life-threatening illness or conditions or in some professions.