01 — WHAT IT IS
The premium does not change and the policy does not expire, as long as you keep paying it. That is most of what there is to say, and the fact that there is not much more to say is the reason people buy it.
It costs more per pound of cover than term does, and that trade is the whole decision. You are paying for certainty and for a policy that is still there when you are old, rather than for the largest possible payout during the years you have young children.
It builds cash value over time. I will show you how slowly that happens in the early years, because that is the part that surprises people who were sold on the idea rather than the mechanics.
02 — BEFORE I RECOMMEND ONE
What I would ask you
- Who depends on your income, and for how long.
- What you are already paying for, including anything through work.
- Whether you can genuinely keep paying this in a bad year. A policy you cancel in year three was worse than no policy.
Ask me the awkward one
Whether you want to do this job or you are working out what cover you need, the first message is the same: tell me what is actually going on and I will tell you what I would do — including when the answer is that you should keep your money.