How long should you take life insurance out for? It depends on how long somebody else would face a financial shortfall without you. If the purpose is protecting a mortgage, start with the expected repayment date. If it is supporting children or a partner, think about the number of years they may need help.
There is no universally correct 10-, 20- or 30-year term. The appropriate length depends on your circumstances, affordability and what other protection you already have.
Match the term to the reason you need cover
- Repayment mortgage: a term broadly matching your remaining mortgage period may be a starting point. Mortgage life insurance explains level and decreasing benefits.
- Dependent children: consider how long essential family costs or childcare might need supporting. That may differ from your mortgage term.
- A partner’s income needs: think about the period until retirement, other household income, savings and existing benefits.
- A specific debt: consider when the borrowing is due to end and whether the debt is likely to change.
- A lifelong financial aim: term insurance may not be suitable if the protection must continue for life. The obligations and pricing of whole-of-life cover are different.
How long should life insurance last for a mortgage?
For a repayment mortgage with 18 years remaining, you might initially explore cover for around that period. The amount insured is a separate choice. Some borrowers consider decreasing term life insurance, whose benefit reduces according to the insurer’s schedule. That schedule may not exactly match your mortgage, especially if you change rates, make overpayments or borrow more.
On an interest-only mortgage where capital remains due at the end, a level benefit may be more appropriate than decreasing cover. Compare the arrangements rather than assuming that a lender’s mortgage term alone determines the right insurance policy.
How long should parents take life insurance out for?
For parents, think about when their children may become financially independent and what the surviving parent could manage on their own income. A household with a newborn may need support for longer than one whose children have left home, but there is no age at which every child stops needing assistance.
Other considerations include childcare costs, a partner’s savings and any death-in-service cover from work. Our guide to how much life insurance you need shows how the amount and duration interact.
Should you choose a longer term just in case?
Longer cover may provide protection for more years but can cost more than a shorter policy on otherwise equivalent terms. It is useful to consider the risk of needing to arrange new cover later, when you will be older and your health may have changed. Avoid choosing the longest possible term automatically: consider whether the premium remains affordable and whether you expect the financial need to continue.
Can you extend or change a policy?
Some policies include guaranteed insurability options or other rights, but these are not universal. A new application generally means new terms and underwriting. Do not assume you can automatically extend cover, maintain the old premium or obtain replacement cover if your health changes.
If you already hold suitable protection, do not cancel it before replacement cover is confirmed and in force. Compare the whole contract and obtain advice where necessary.
Is whole-of-life insurance different?
Yes. Whole-of-life cover is designed to continue for life while the policy’s required premiums are paid and conditions are met. Its pricing, benefits and possible review provisions are not directly comparable with term insurance covering a defined period.
Get a quotation for your chosen term
Our life insurance quote request asks what you want to protect, how much cover you might need and how many years you have in mind. Our advisers can then help you review those choices and compare suitable UK insurer options.
This is general guidance, not a personal recommendation. Discount Life Cover is a trading style of My Key Finance Ltd, authorised and regulated by the FCA (FRN 628996).