What is term life insurance?
Term life insurance covers you for a fixed period and pays out only if you die within it. It is the cheapest form of life cover. If the term ends and you are still alive, nothing is paid and the policy simply stops — there is no cash value.
Level term keeps the sum insured constant, which suits income replacement and interest-only mortgages. Decreasing term reduces the sum in line with a repayment mortgage and costs less. Increasing or index-linked term keeps pace with inflation.
Family income benefit is a variant that pays a monthly income for the remainder of the term rather than a lump sum, which often matches what a household actually needs better than a large single payment.
Renewable and convertible options let you extend or convert to whole of life later without further medical underwriting — worth having, because health rarely improves with time. As with all life cover, write it in trust at outset.