Having some form of life insurance in place is really important if you have people who are financially dependent on you, such as children or a partner with whom you own a property, who would be left worse off if you passed away.
Life insurance isn’t just for those who are working and earning an income. If you are a stay-at-home parent and your partner passed away, having life insurance will be beneficial for childcare and other essential things that your partner will need to get by.
With term insurance, you are only getting cover for a specific period. It, therefore, suits those who want a pay-out to cover large loans like a mortgage, as well as putting protection in place to help with the costs of raising a family until the children are ready to leave the family home.
Some insurers offer cover stretching from five years all the way up to 70 years. The appropriate term for an insurance policy will vary, but there are a few factors worth bearing in mind when working it out. If your primary concern is ensuring your family can pay off the mortgage after you pass away, choose a term which is at least as long as your mortgage term.