Cost of Term Insurance

Continuing further from our previous article on Term Insurance, let’s discuss some more details of term insurance in this article –especially cost and types of term insurance.

What does the term insurance cost?
This depends on several factors, such as the amount of cover you want and the length of the term. Obviously, it's also based on the likelihood of your insurer having to pay out: if you're a smoker and do a dangerous job, you'll pay more than a non-smoking office worker. Term life cover also costs more for men because, on average, they don't live as long. Always compare what's covered by a policy, not just the price. Some might be cheaper than others, but they may not offer the same level of protection.

Whole-of-life insurance
Whole-of-life insurance pays out an agreed sum when you die, whenever that is.

What does the whole life insurance cost?
These policies will cost you more, partly because they will pay out whenever the event (death) happens, but also because of the various charges that come with them. The cost also depends on your lifestyle: if you're a smoker and do a dangerous job, you'll pay more than a non-smoking office worker. Life cover also costs more for men because, on average, they don't live as long as women. Always compare what's covered by a policy, not just the price. Some might be cheaper than others, but they may not offer the same level of protection.

In the next article, let’s talk about Pension term insurance in more details, and also about the tax benefit and limits that are imposed.
Link to previous article on Term Insurance