- Taken for a fixed time period
- Fixed cost for duration of plan depending on health (particularly
smoking), age and location at commencement
- Pays a lump sum if you die
- Has no surrender value at any time
- Usually the most cost effective form of life insurance
- Gives protection to your family if you die early, can provide
for partner's income and children's education
- Can be used to repay mortgage in case of premature death
- Also used to insure key employees, particularly in small businesses
- Typically a man with a young family can require insurance up
to 10x his annual salary
- It is also important to insure the mother of young children as
the cost of maids, nannies, taxis can be very high.
- Usually recommended to be written in a trust to simplify probate.
If you move abroad, do check that your life insurance covers you when living
in another country. Many do not.