Life Insurance: The Essential Points
- Author Mark Oral
- Published December 15, 2011
- Word count 436
Life insurance is a versatile and effective way of handling the problems your family may face after your death, including:
Mortgage repayments
Replacing a primary earner's salary
Covering childcare problems
Covering education expenses
Which policy should I choose?
Choosing a life insurance policy can seem overwhelming. There are a huge amount of different types of cover available. The good news is, rather than price competition, the insurance industry tends to focus on providing a greater range of policies - meaning you'll have less trouble identifying the one which suits you best.
While there are two main types of life insurance 'term' and 'whole of life', the choices you have within those categories may be more expansive than you think. Types of life insurance available to you include:
Whole of life insurance: guaranteed to pay out when you die. While a financial return is assured, this type of insurance tends to be the most expensive, since the outcome is certain - as opposed to level term insurance.
Level term insurance: guaranteed to pay out in the event of your death within a predetermined time. This type of life insurance offers the security of unchanging premiums and return amounts over the term of the policy. If the policy expires before your death, however, no payment will be made.
Decreasing term life insurance: used to protect mortgage repayments, this policy involves a decreasing assured sum over the lifetime of the policy.
Renewable term insurance: simply offers an option to renew the policy upon its expiry, sometimes without a new health review.
Convertible term insurance: includes the option to convert level term insurance into whole of life insurance.
Increasing term insurance: deals with inflation by offering an escalating assured sum over the lifetime of the policy.
Index linked term insurance: some insurers offer a policy in which premiums increase each year in relation to the Retail Price Index.
What will I pay?
Age, sex and occupation play a large part in how much your premiums will be - as does anything which may affect the likelihood of an insurer having to pay out. Other factors which will affect rates include smoking, general health and lifestyle. Policies tend to include all associated expenses.
You may want to consider taking out a critical illness cover as part of your policy. This covers the costs and burdens of an unexpected and serious illness which can put a huge strain on your finances.
It's probably more important to consider what is actually covered by the policy you choose, as opposed to the price. A cheap policy may not offer you the protection you require.
Direct.gov - you can get useful information on the Government's website http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/Insurance/DG_10034596 and from the Scottish Friendly website at http://www.scottishfriendly.co.uk/life-cover
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Natural Confidence: How V-Tight Gel Supports Women’s Intimate Health
- “Dean Martin: From Small-Town Beginnings to Timeless Legend of Music and Film.”
- How is clubfoot treated?
- Complete Guide to Choosing the Perfect Exterior Paint
- How to Manage Your Budget in option 20/30/50?
- Why Choose Automatic Driving Schools in Glasgow for Effortless Learning? Discover Autogear Driving School's Expert Approach
- “Daniel Day-Lewis— Deep Immersion and Subtle Gesture in There Will Be Blood.”
- “Shadows of Youth: How The Graduate Still Echoes Across a Lifetime.”
- ISNation Featured on Globe & Mail, MarketWatch, and YahooFinance
- How Financial Platforms Empower Smarter Trades
- "Louise Brooks: The Icon Who Defied Hollywood."
- Krishna in the Forest – The Sacred Inspiration Behind Mogul Interior’s Carved Doors
- Nature’s Harmony Collection – Signature Carved Doors
- Labor Day Sale: Heritage Revival Collection by Mogul Interior
- Refined Rustic Luxury Meets Vintage Elegance: A Global Ranch Home
- “Play It Again, World: Why Casablanca Still Speaks to Us All These Years Later.”
- The Merits of Bacon and Eggs for Breakfast
- “From Spotlight to Parliament: The Fearless Journey of Glenda Jackson.”
- Is a Farm in Tennessee the Life for Me?
- “Drifting Rooms and Vanishing Faces: Confronting the Abyss in The Father.”
- Understanding Men’s Lacrosse: A Beginner’s Guide to the Sport
- Why Knowledge Retention Is Every Team’s Secret Weapon
- From Messy to Mission-Aligned: The Tech Stack That Gets Teams Back on Track
- Fix the Schedule, Save the Season: Why Smart Leagues Start With Smart Calendars
- From Cart Chaos to Symphony: Why Scalable Commerce Orchestration Is the Conductor You Need
- The High-Tech Future of Fleet Maintenance
- Big Vision, Small Budget? Enter the Fractional Integrator
- Stale Content Doesn’t Rank — or Convert
- Welcome to the Big Leagues
- Antique Statements for the Home: From Doors to Decor