Contact Insurance - Term Life Insurance Specialist

Term life insurance or term assurance is life insurance that give you life cover for a set period of time, the term.

Premiums for term life insurance are based on the amount you want to insure, the term you want in insurance to run for, your age and you health/lifestyle. Premiums get higher as the cover amount, the term and your age increase.

There are two main types of term life insurance; Decreasing Term Life Insurance, Level Term Life Insurance and Increasing Term Life Insurance.

DecreasingTerm Life Insurance: is taken out specifically to cover a debt (usually a mortgage) and while the premiums for the insurance will usually stay the same, the amount you are covered for will reduce each year in line with your debt (often to a maximum of 7% interest) - this is the cheapest type of term insurance.

Level Term Life Insurance: is taken out to provide a lump sum to a beneficiary upon death. As the name suggests, the amount of cover you have will remain level throughout the term of the policy. Level Term Life Insurance is usually taken out to protect children or loved ones who would find it financially difficult to manage should the worst happen and the are left to cope.

Incresing Term Life Insurance: is also taken out to provide a lump sum to a beneficiary upon your death. The sum assured will increase over the term of the policy at the same rate as inflation. In the UK, insurers use the Retail Price Index to calculate the level of interest your policy will accrue.

To find out which policy is most suited to your needs, please call one of advisers free on 0800 328 5773 or visit the Contact Insurance website for further information.