Term of Life Assurance

Graeme7777

Hi,

How does one decide what is the best number of years for a life assurance (level term) policy? If, for example, I need a cover for the next 10 years, is it generally better to buy a single 10-year policy, or a series of consecutive shorter-term ones like five 2-year policies?

Any advice would be much appreciated.

sandsy

As purchasing life insurance involves underwriting, it's better to do one 10 year policy as you don't know what your state of health will be 2, 4, 6, 8 yrs down the line. If it deteriorates, that could make future policies more expensive.

Also, the cost of life insurance increases as you get older (as the mortality risk to the life insurer increases). So again, better to do it while you're younger.

dunstonh

Take it out to match the financial need.