If you have a mortgage then you would be advised to make sure you are covered
for the same number of years that are remaining on your mortgage.
The initial sum insured should equal the capital sum outstanding on your mortgage,
and if you have an interest only mortgage, you will have level term life insurance.
If you have a repayment mortgage, you will take on a decreasing term life insurance
policy.
If you do not have a mortgage, then it is a personal choice as to how long to
insure for. Most people insure for between 10 and 25 years.
All proceeds from insurance policies are tax-free.
IMPORTANT:
If you want your insurance to cover your monthly mortgage payments if you are
off work through sickness, accident or unemployment, then you need to buy Mortgage
Payment Protection Insurance.
If you want to receive a payout if you become critically ill, you need Critical
Illness Insurance.
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