Term life cover is simple, and that is the point

These are listed in the order worth acting on, which with term life insurance is not the order they are usually presented in.

What it does and does not do

Term assurance pays a lump sum if you die during the term, and pays nothing if you survive it. That absence of a payout is why it is cheap, and it is the correct product for a temporary need such as a mortgage or dependent children.

Whole-of-life and investment-linked products solve different problems and cost substantially more. If nobody depends on your income, the case for life cover is weak regardless of what is being sold.

Sizing the cover

Start from what would actually have to be paid or replaced: outstanding mortgage, years of income to a child's independence, and any debts that would pass on. Multiples-of-salary rules of thumb are a starting point rather than an answer. Decreasing term cover, which falls in line with a repayment mortgage, is cheaper where the mortgage is the whole reason for the policy.

Joint or single

A joint policy on two lives typically pays once, on the first death, and then ends. Two single policies cost somewhat more and pay twice if both die, and survive a separation intact. For couples with children, two single policies are frequently the better structure despite the higher premium.

Underwriting and honesty

Applications ask about health, family history, smoking and occupation, and insurers verify at a claim. A misstatement discovered after death leaves dependants arguing with an insurer at the worst possible moment. Declaring accurately, including smoking status, is the entire basis on which the policy will be honoured.

None of this is a substitute for talking to a clinician if something feels wrong.

Trusts and speed

In several jurisdictions, writing a policy in trust means the payout goes directly to beneficiaries rather than through the estate. That can mean payment in weeks rather than months and may sit outside inheritance tax. It is usually free to arrange at outset and expensive to overlook.

Everything above, in order of what to do first

1. What it does and does not do. Term assurance pays a lump sum if you die during the term, and pays nothing if you survive it.
2. Sizing the cover. Start from what would actually have to be paid or replaced: outstanding mortgage, years of income to a child's independence, and any debts that would pass on.
3. Joint or single. A joint policy on two lives typically pays once, on the first death, and then ends.
4. Underwriting and honesty. Applications ask about health, family history, smoking and occupation, and insurers verify at a claim.
5. Trusts and speed. In several jurisdictions, writing a policy in trust means the payout goes directly to beneficiaries rather than through the estate.

The takeaway

Buy a fixed amount for a fixed period, tell the truth on the form, and write it in trust if your jurisdiction allows.

Pick the one that costs you least, and let the rest wait.