Term insurance

Term insurance is the cheapest type of life insurance to protect your family. If you have a limited income and/or a young family you will find this policy adequate. It only pays out if you die within a fixed period (ten to twenty years). You can set the term based on your children’s financial independence or your mortgage’s remaining life. Know that there will be no payment if you have not died once the term ends. Term insurance can be paid out as a whole amount or as family income benefit.
What are the different types of term insurance? Level Term – The policy insures you for the same amount throughout the term.
Renewable Term – After a specific period you are allowed to increase your term regardless of your health. However, the policy cannot continue after your are 65.
Convertible Term – You can convert the policy to permanent or endowment life coverage without evidence of your health. The costs will change according to your age and the type of policy you choose. They initially offer cheap life coverage with valuable options if your income increases or your health declines.
Decreasing Term – These policies usually cover a mortgage, inheritance tax liability or other outstanding debts in case of your early death. The amount insured is reduced by a fixed amount each year while the premiums stay the same throughout the term.
Increasing Term – With this policy insurance protection increases in line with your earnings. The amount insured and premiums increase each term by a set percentage.   
Family Income Benefit – Upon your death, your family is paid a regular income until the end of the insured term. This type of policy usually replaces lost salary or provides an income for particular reasons such as your children’s education. It can be paid monthly, quarterly or yearly. Some policies also include annual fixed rate increases, usually of three to five percent.