What is term life insurance?

Term life insurance is better understood as a life insurance policy that covers you for loss of life for a fixed term. A policy that is fixed term has a limited duration and once it has expired, it will be entirely up to you whether you want to renew your coverage or simply let it lapse. If you let the policy lapse, you will not be insured and your dependents will not receive a lump sum pay-out in the event of your death.

The cost of the premium you pay for your term life insurance policy will depend on a number of factors, namely your age, health and the life insurer’s determination of life expectancy (meaning, how long the insurer thinks you will live). The amount you will be covered for will be fixed at the beginning of the policy and will not change. It is important to bear in mind however, that if your policy is for a fixed term and you decide to renew when it runs out, the premium will be recalculated based on your increased age and will therefore cost you more.

What are the advantages and disadvantages of a term life insurance policy?

The advantages of a term life insurance policy are that you will leave a cash sum to your family and dependants which will help them pay funeral costs, pay off a mortgage, or secure their financial position when you die. You have the certainty of the cost of your premium and the amount the policy will pay out, because these are fixed.

The main disadvantage of term life insurance is that if you die after the policy ends, there is no cash pay-out. In addition, as there is no investment component with a term life insurance policy, as there is with a whole life insurance policy, you will not receive any money back at the end of the term, no matter how much you paid in or for how long.

It is important to weigh up the considerations. For expert advice about choosing the right policy, talk to us here at Continental.

Continental are the experts you need

We are leaders in the field of insurance throughout the Middle East. We’re committed to providing personalised solutions for your specific life insurance requirements. Talk to our qualified and experienced team of consultants today about your needs and we’ll help to clarify the type of life insurance that would work best for you.

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Get in touch with the expert advisers at Continental

Deciding on the life insurance policy that’s right for you can be a daunting task. At Continental our specialist life insurance experts are happy to talk you through a wide range of options, including term life insurance. We’ll help you unravel the complexity of the insurance world and find the right term life insurance solution, tailored for your specific needs.

For help with choosing the right insurance policy, contact us today.

Three reasons to choose Continental


A network of qualified professionals

We recognise our responsibility as your guide to the complex, ever-changing world of financial planning and advice. Our advisory and consulting services help you better understand your options to create proven solutions that align with your goals.

Continental’s team of over 300 qualified members operating from offices in the Middle East, Europe and Asia are geared to provide you with impeccable service and unbiased advice that is backed by professional qualifications, rich experience and a guiding philosophy of doing what is right for you, our client.

Our dedication to continuing education, research and technology, ensures we stay ahead, so we can take you further.


Multifaceted solutions

For us there’s nothing more important than your financial security. Whether you are securing your family’s future, assisting your clients or planning your own expansion, Continental can provide the guidance and resources necessary to reach your financial goals and aspirations quickly and efficiently.

Our extensive range of products from reputed local and international partners allow us to offer you the most comprehensive financial and insurance solutions in the market with a commitment to provide a dedicated and personalised service to you at all times.


A personalised approach

We believe that in life, and in business, personal relationships come first. Our relationships are founded on trust that we work hard to uphold – always in addition to a qualified, experienced team.

To help you meet your unique financial goals and aspirations, we ensure that our advice and recommendations are tailored to suit your objectives, risk tolerance, time horizon, cash requirements and other key parameters. We source solutions that are designed based on your long-term interests which could vary from minimising risk, preserving wealth, to maximising income or accumulating capital and other financial desires.

The quality of our service relies on confidentiality, trust and discretion, which make us the preferred choice for our clients.

What our clients say about us


1. How long should I take term life cover for?

The length of your term life insurance policy is a matter for you to decide. It will vary depending on your individual circumstances. You will need to consider why you are choosing term life insurance. If it is to cover you while you have financially dependent children or a mortgage for example, this would affect your choice of length of term for your policy.

2. What is the length of term life insurance?

The length of your policy will depend on your aim when you take the policy out. Here at Continental, our experts typically see policies lasting 10, 15, 20, 25 or 30 years.

3. What is a yearly renewable term?

A yearly renewable term (YRT) policy has no specified term and is renewable every year, without the need for fresh evidence of your insurability. However, you need to be aware that while the premiums on a YRT policy begin low, they tend to increase annually, and your age is always taken into consideration.

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