what is life insurance?
Life insurance – or Life Cover – policies are intended to help people look after their family after they are gone, paying out a lump sum upon the policy holder’s passing. Depending on the type of policy and the length of time the policy holder is covered, the pay-outs and premiums can vary greatly, so we advise you to get expert advice suited to your specific circumstances.
WHY SHOULD I GET LIFE INSURANCE
Life insurance serves to lessen the financial impact of tragedy, helping your family to cover costs after you pass and providing peace of mind. Depending on your wishes, the pay out could be used to cover funeral costs, clear joint debts or pay for day-to-day expenses while your family adjusts to the loss.
Thanks to our flexible policies, we can help you get the cover you need to provide peace of mind and financial security for your loved ones. We offer two main types of life insurance policy, each with different pros and cons to consider, which we’ve outlined below:
level term life insurance
Level Term Life Insurance is a type of life insurance wherein the amount of cover is fixed for the whole policy term, staying level throughout, hence the name. As the assured pay out remains the same throughout the policy terms, you don’t get any bonuses or penalties for claiming at a specific point under the policy.
Benefits of Level Term Insurance Policies
Because the cover amount remains the same throughout the term of your policy, you will know exactly how much your loved ones can claim, helping you plan. This type of policy is best suited to covering fixed costs such as rent and mortgage repayments or can be used to provide a lump sum payment.
decreasing term life insurance
Decreasing Term Life Insurance (or Mortgage Life Insurance) is a type of insurance policy wherein the pay out that your loved ones would receive decreases over the course of your policy term. These insurance policies are taken out for a fixed period and are usually intended to cover specific debts – such as a mortgage – that would normally decrease.
Benefits of Decreasing Term Life Insurance Policies
Because the insurance policy is designed to settle a specific debt, you can rest assured that your loved ones won’t have to worry about paying off your debts. What’s more, decreasing term policies usually have far cheaper premiums than comparable Level Term policies and you still have the option to get a fixed premium during your policy term.
