Brits Opting for Term Life
by Efin Advisor | October 11, 2007
God save the Queen! When it comes to her royal subjects, a greater number of consumers in Great Britain are choosing to purchase term life insurance over its whole-of-life alternative.
Steve Wroe, spokesperson for independent financial adviser Life Direct, said that many Britons are still unaware that whole life products can now offer guaranteed premiums, meaning that they do not necessarily have to pay more upon renewal.
He added that while whole-of-life policies are more expensive than their term counterparts, they fulfil their purpose well.
However, Mr Wroe noted: “There’s no point in insuring yourself for a whole of life policy for hundreds of thousands of pounds if it’s just intended to cover your children whilst they’re growing up.”
Term life insurance products pay out a lump sum upon death during the term period, which can be anything from a year to 40 years or longer, while whole-of-life insurance policies pay out a certain amount whenever the holder dies.
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