Start with your end dates
Write down the dates when your big financial responsibilities finish. When does your mortgage end? When will your youngest child leave education? When do you plan to retire? These dates show how long your family would rely on your income.
The term you choose should cover the longest of these, or you can split your cover into separate policies with different end dates.
- Mortgage end date
- Youngest child leaving education or home
- Your planned retirement age
- When a partner's pension or savings would take over
Matching cover to a mortgage
For mortgage protection, set the term to match the remaining years on the mortgage. If you remortgage and extend the term, check your cover still lines up. A repayment mortgage pairs well with decreasing cover, where the payout falls as the debt does.
An interest-only mortgage needs level cover, because the full loan stays outstanding until the end.
Protecting children until they are independent
If you have young children, think about how long they would need support. Many parents choose a term that runs until their youngest reaches their early twenties, which allows for university or training. A new baby can mean adding a new policy rather than stretching an old one.
Family income benefit is a neat fit here. It pays a monthly income from the claim until the end of the term, so the payout shrinks as the children grow.
When cover for life makes sense
Some needs never end. If you want to leave an inheritance, pay for a funeral or provide money for an inheritance tax bill, a policy with an end date may expire before it is needed. Whole of life cover pays whenever you die, as long as premiums are kept up.
It costs more than term cover, so many people use a mix: term cover for the mortgage and family years, plus a smaller whole of life policy for lasting needs.
How Hi Tomorrow sets the term
We map your mortgage, children and retirement plans, then recommend a term, or a mix of policies, that covers the years that matter without paying for years you do not need.
We show you how the price changes with a shorter or longer term so you can choose with real figures from our panel. Acceptance and terms are subject to the insurer's underwriting.