How long you need your life insurance to last will depend on your own personal needs.
When thinking about your policy length you should consider:
- The cost of your mortgage
- How long until your mortgage is paid off
- How long until you retire
- Whether you have dependants
- How long until your dependants are financially independent
- Rising living costs
- Rising funeral costs
These factors will give you a rough idea of how long your cover should last.
For example, if looking to protect your mortgage, the term of your policy will need to be at least as long as your mortgage term.
However, life can be unpredictable and it can be hard to plan for every life event.
If your circumstances change you may need more cover than you originally planned for.
This is where increasing life insurance could be useful as your sum assured increases each year.
Alternatively, most term or whole of life insurance policies include a ‘life changes’ (guaranteed insurability) option – meaning you only increase your cover amount when you need to.
At Reassured we can compare quotes from some of the UK's leading providers and inform you on which insurers offer the guaranteed insurability option.