Term Life Insurance
Term life insurance offers cover for your family or other dependants in the event of your death. The policy will pay out if you die within the set period of time, if you survive the term then it pays nothing.
In contrast, Whole life insurance, lasts for your whole life.
No one really likes to think about death but it is as much a part of life as everything else, if you are considering taking out life insurance you should be looking ahead to the future and thinking about how your loved ones will survive after you have gone. The loss of a loved one can be difficult, dealing with grief is by no means easy and adding a financial burden to the situation can make life even harder to cope with that's why it is advisable to take out some sort of life insurance to ensure the well being of your family whilst you are not around.
You can get free life insurance quotes quotes quickly and easily so you can determine exactly what cover you get for what price.
When choosing a policy you need to consider how long you want the term to be. You may choose to have the term set to cover the number of years until your children are fully financially independent or until the end of your mortgage repayments. This can include replacement of your salary, payment of childcare costs, or payment of university college fees for your offspring.
There are several types of cover commonly available and plenty of insurers in the UK who can provide it. It is best to shop around extensively and compare premiums as cost can vary dramatically. Generally speaking term life insurance is the cheaper type of life insurance compared other policies such as Whole Life Insurance.
Common types of cover:
- Lump Sum Insurance - This type of cover pays out a lump sum in the event of your death. This is usually the most expensive form of life insurance as it guaranties a set payout.
- Family Income Benefit - This means that instead of a lump sum your family will receive regular payments.
- Other Benefits - Some policies can include critical illness insurance ensuring a payout in the event of the diagnosis of a critical illness that prevents you from working, this isn't always included.
Policies usually last for 5, 10, 15, 20 or 25 years, the cost of premiums will vary depending of the length of term.
It is always advisable when you are considering life insurance of any kind that you seek professional advice to ensure that the policy is suited to you and your family's financial and medical requirements.©MoneyHighStreet.com