What does term mean?

edited 30 November -1 at 1:00AM in Insurance & Life Assurance
5 replies 497 views
aj3001aj3001 Forumite
730 Posts
✭✭
edited 30 November -1 at 1:00AM in Insurance & Life Assurance
Just a quick question, when I'm looking at life insurance, what does it mean when it asks for term? Is it the length of contract I'm signing in for?

Is a longer term better or not?

Replies

  • mleonard79mleonard79 Forumite
    1.6K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    what does it mean when it asks for term? Is it the length of contract I'm signing in for?

    Basically yes - the term is how long you want the life insurance policy to last for. There are two basic types of Life Insurance (Term policies and whole life policies.) Read Martin's article on Level Term Assurance HERE.

    Regards

    Michelle
    :hello: :hello: :hello:
  • aj3001aj3001 Forumite
    730 Posts
    ✭✭
    Thank you that was a huge help.

    Just one more quick question, am I tied into the term of the life assurance? Or if I sign up for 20 years, can I say cancel after 5?
  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    You can cancel at any point during the term.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • aj3001aj3001 Forumite
    730 Posts
    ✭✭
    Last question (I hope) So is it better to go for a shorter or longer term?
  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    You go with the term to cover the need.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
Latest MSE News and Guides

A guide to council tax bands

Lower your band & save £1,000s

MSE Guides

Cinema MoneySaving tips & tricks

Including year's 2for1 movies for £1

MSE Deals