Term life insurance
The product in brief
For individuals
Term life insurance: maximum protection for your family at a sensible premium
A term policy is the most direct way to look after your loved ones. You choose the sum insured and the term, and the insurer undertakes to pay that sum to the beneficiary if the irreparable happens to the insured person during the term. There is no savings element in such a contract, so for the same amount of cover the premium is noticeably lower than in a savings programme. The calculator above gives a preliminary price, and the Dynasty insurance agency will help you compare terms from several licensed insurers.
Who this policy is for
Term insurance is especially relevant when other people’s wellbeing depends on one person’s income: the family has a mortgage or loan, the children are growing up, or one spouse does not work. The policy covers the period of greatest financial vulnerability — until the children become independent or the debt is repaid.
Protecting your family
- The payout replaces lost income during the adjustment period
- Funds for children’s education and everyday expenses
- No need to sell property in a hurry
- You choose the beneficiary
Protecting a loan
- The sum can match the outstanding debt
- The policy term matches the loan term
- The debt does not fall on your loved ones
- You can buy the policy yourself, not only through the bank
How to determine the sum insured
A convenient guide is to add up obligations and needs: outstanding loans, several years of family expenses, future education costs for the children. Existing savings can be deducted from this amount. Too small a sum will not do the job; too large a sum will raise the premium and may require a medical examination. A specialist will help you find the balance.
What the rate depends on
The price of the policy is calculated individually and depends on several factors. The higher the statistical probability of an insured event, the higher the rate.
- Age. Health risks increase with age, so the premium goes up.
- Gender. Insurers take into account differences in life expectancy statistics.
- Smoking. The rate for smokers is usually higher.
- Health and occupation. Chronic conditions and hazardous work affect the terms.
- Sum and term. The larger they are, the higher the premium in absolute terms.
- Additional risks. Disability, critical illness, accident.
Important. Fill in the health and lifestyle questionnaire honestly. If the insurer establishes that the information was inaccurate, it is entitled to refuse payment — and the protection the policy was taken out for will not work.
Term or savings insurance
| Criterion | Term policy | Savings policy |
|---|---|---|
| Main purpose | Protection for a set period | Saving and protection |
| Premium | Lower for the same cover | Higher, part goes into savings |
| Payout at the end of the term | Not provided | The accumulated amount |
| Surrender value | Usually none | Yes |
If your goal is protection as such and you prefer to save using other instruments, a term policy gives more cover for the same money. If it matters to combine both goals in one contract, a savings programme is worth considering.
How to apply
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Estimate
Enter your age, gender, sum insured and term in the calculator.
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Comparison
We gather offers from insurers and show you the differences in rates and terms.
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Questionnaire and contract
You fill in the questionnaire, sign the contract and pay the premium.
What to check in the contract
- List of risks. Death from any cause or only from an accident.
- Exclusions. Events for which no payout is made.
- Waiting period. Whether cover for illness applies from day one.
- Beneficiary. Whether one is named and whether it can be changed.
- Payment terms. Lump sum or instalments, and whether there is a grace period.
How to choose the policy term
The term should be linked to the period when your family is most financially vulnerable. To protect a loan, this is the repayment period; to protect children, it is the time until they come of age or finish their education. Some insurers offer one-year contracts renewed annually, others offer multi-year contracts with a rate fixed for the whole term. A long contract protects you against premiums rising with age and against the situation where changes in your health make it harder to extend cover. A short contract gives flexibility if your obligations will change soon.
Protection that works when it is needed most
Calculate the price in the calculator above and leave a request — Dynasty’s specialists will select a programme and help you complete the contract correctly.
This material is for information only and is not a public offer. Rates, lists of risks and exclusions are determined by the insurance rules and the contract of the specific insurance company.
Frequently asked questions
What happens when the policy term ends?
The contract ends, and if there was no insured event, no payout is made. This is normal: you paid for protection during the term, not for savings. Many insurers let you take out a new contract for the next period.
Why does insurance cost more for smokers?
Statistically, smoking increases the risk of serious illness, and insurers take this into account in the rate. You should not conceal smoking: inaccurate information in the questionnaire may be grounds for refusing a payout.
Do I need a medical examination?
In most cases a health questionnaire is enough. An examination may be requested for a large sum insured, an older age or a history of serious illness. Requirements depend on the rules of the specific insurer.
Can I insure a loan without involving the bank?
Yes, you can take out a term life policy yourself and set the sum to match the outstanding debt. If the bank requires insurance under the loan terms, check its requirements for the policy and the insurer in advance.
Is the sum insured paid out in case of illness?
The basic risk is the death of the insured person. Cover for disability or critical illness can usually be added as an additional risk. The set of risks affects the price of the policy.
Is the payout taxed?
The taxation of insurance payouts is governed by tax legislation and depends on the type of contract and the recipient. Check the current rules with the insurer or a tax adviser.
Can I change the beneficiary?
As a rule, the policyholder can replace the beneficiary during the contract by submitting a request to the insurer. Exceptions are possible if the beneficiary has already taken action under the contract or is a lending bank.