Term Life insurance

Term life insurance is a life insurance that is limited in time (1 year, 5 years, 10 years or 20 years) but with a fixed payment rate. At the end of the period, it is necessary to re-apply based on the new insurance conditions.

So if your health has altered during the previous insurance period, the insurer may refuse to provide quotation. Also the new policy will be based on the age of the applicant and  premium increases substantially after the age of 40. Therefore, it is very important to carefully review the length of the insurance period you need to be covered for before applying for Term Life insurance.

Of course, Term Life insurance is much cheaper compared to a Whole Life insurance policy but there is no savings attached to it and the insurance is limited in time.

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