LifePolicyFactsTerm life insurance is the simplest type of cover. You choose an amount and a length of time, you pay a fixed premium, and if you die within that time your family receives the payout.
The three choices you make
Cover amount: the sum paid on death. Term length: commonly 10, 20 or 30 years. Premium: the price, usually level for the whole term. Longer terms and larger amounts raise the price.
What happens during and after the term
| Moment | Result |
|---|---|
| You die during the term | The insurer pays the named beneficiary |
| You live past the term | Cover ends and nothing is paid |
| You stop paying | The policy lapses after a grace period |
Choosing a term length
Match the term to the need. If you have 18 years left on a mortgage and a child aged 3, a 25-year term covers both. See how much cover you need and compare with whole life.
What can change the price
Age, health, smoking, family medical history, occupation and hobbies all matter. Applying younger usually costs less; see the cost of waiting.
Useful extras
Some policies offer a conversion option, a waiver of premium if you become disabled, or a critical illness add-on. Each extra raises the cost, so ask whether you need it.
Frequently asked questions
Is the premium fixed?
For level term, yes. Some policies are renewable and rise after the first term.
Can I cancel any time?
Usually yes. Cover stops and you do not get premiums back, unless you chose a return-of-premium policy.
Educational content only. Not insurance, financial or legal advice. Figures are illustrations; check real quotes and policy documents.