Term Assurance
Pure life cover that pays out only if you die during the chosen term.
Term assurance is the simplest, cheapest form of life insurance: you pick a sum assured and a term (often 20 to 30 years, covering the mortgage and dependants), pay a level monthly premium, and the insurer pays out a tax-free lump sum if you die before the term ends. If you survive, the policy expires with no payout and no return of premium. Sold by Aviva, Legal & General, Vitality, Royal London, and others, with the FCA regulating conduct and the FSCS providing 100% protection if the insurer fails. For most people with young children or a mortgage, this is the right cover, not whole-of-life or endowment dressed up as ‘savings’.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.