WHAT IS LIFE INSURANCE?

Life Insurance is one of the most straightforward types of protection insurance put simply, it pays out when you die. There are two main types of life insurance

Term assurance: covers you for a fixed period of, say, 10 years and pays out if you die during this period.
Whole-of-life policies: these policies continue indefinitely and pay when you die, regardless of when that happens.
Mortgage Protection

Life assurance: these policies can be leveled or decreased depending upon the type of mortgage (interest only or repayment), term of the mortgage, and loan amount.

WHY DO I NEED LIFE INSURANCE?

There are many different reasons why you might take out life insurance. You might want to ensure your mortgage is paid off if you die, or your main concern might be to leave behind money for your family to live on. Some people take out whole-of-life policies to cover an expected inheritance tax bill when they die. The size of the monthly premium will depend on the following factors:

TYPES OF TERM INSURANCE

With term insurance, you choose the amount you want to be insured for and the period for which you want coverage. If you die within the term, the policy pays out to your beneficiaries. There are two main types of term assurance:

Level-term

The amount you’re covered for remains level throughout the term. The monthly or annual premiums you pay usually stay the same, too. Level-term policies can be a good option for family protection, where you want to leave a lump sum that your family can invest to live on after you’ve gone.

Decreasing-term

The amount you’re covered for decreases over the term of the policy. These policies are often used to cover a debt that reduces over time, such as a repayment mortgage. Premiums are usually significantly cheaper than for level-term cover.

HOW DO I BUY LIFE INSURANCE?

We think it’s worth taking time to complete the Enquiry form on the home page and one of our experienced advisors will get in touch with you to advise you on your Insurance needs.

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