Term Assurance

Life insurance cover for a specified period is referred to as term assurance. Level term assurance means that the amount that your dependents receive in the event of your death during this period is fixed, i.e. remains level. So for a fixed, lump sum payable upon death during a pre-determined period, level term life insurance is worthwhile considering.

As with most types of life insurance, the premiums that you pay for term assurance will depend upon a number of factors, including:

• The sum insured under the policy
• Your age
• Your weight
• Your height
• Your alcohol and smoking status
• Your occupation (some jobs are considered to be a higher risk occupation)
• Your health record, including any existing health conditions

Generally speaking, the younger and fitter you are, the lower the term assurance premiums are likely to be. Quite often, you get the option to renew or extend the term assurance policy at the end of its term, assuming of course that there has been no claim.

For those whose family, children and other dependents would suffer financially in the event of your premature demise, it is worthwhile considering a level term insurance policy.