Life insurance simplified – learn about the different types available to you and what they offer.
On the surface, life insurance seems simple and straightforward. And for the most part, it is.
It’s designed to pay out a set lump sum to your family or dependants when you die. Simple enough, and easy to see why it’s such a popular form of protection as it looks after the future of your family or loved ones.
But what you may not be aware of are the different types of life insurance available to you.
This post reveals exactly what those types are, and will help you choose a form of life insurance that’s right for you.
You can choose from two main types of life insurance: ‘Term’ and ‘whole-of-life’. They are available for different durations, and therefore offer you slightly different benefits and premiums.
This pays your beneficiaries a lump sum if you die within a set period of time. You can choose the time period for however long you wish – up to the limits set by the insurer. The longer the term, the higher your premiums are likely to be as the chances of you dying and invoking a payout increase.
However, if you don’t pass away during your chosen timeframe, your policy simply comes to an end and you receive no benefit. Of course, you will receive the benefit of peace of mind during the time you hold your policy. But you won’t receive any form of financial benefit.
This offers exactly what the name suggests – protection for the entire duration of your life. A payout is guaranteed in the event of your death, whenever it may be.
Premiums for Whole-of-life are naturally higher than Term as your beneficiaries are guaranteed a financial benefit.
We can talk you through the types of life insurance available in more detail. What’s more, we search through a panel of leading providers to help you find the best deal.
Call us today on 01454 857 950 to find out more.