Types of Cover
One of the most affordable life insurance is Term insurance.
- Level Term Insurance- the cash sum is paid out when the policyholder dies during a fixed term, whether they die on the first or last day.
- Increasing Term Insurance- the policy increases in line with inflation. This is beneficial over a longer period.
- Decreasing Term Insurance- this type of cover is usually aimed to assist in repayment of loans or remaining debt. The cash pay out reduces over the policy term.
- Convertible Term Insurance- enables the existing insurance policy to be converted into a whole of life policy. Which means regardless of the policyholders health they will not be refused a new policy.
- Whole of Life Insurance- Covers the policyholder’s entire life and will have a review dates meaning the policyholders contributions can increase. The cash sum will be only be paid out when the policyholder dies.
Critical Illness Cover
It plans to pay out a lump sum in event you are diagnosed with a critical illness. It is a one off payment to help you and your family when you need it the most.
Some insurance policies don’t require a medical examination in order for a policy to be taken out.
Over 50 Cover
This is specifically for those aged 50 and over.
Designed to maintain income for the future whilst the main earner is no longer able to work.
When you are a higher risk candidate and don’t meet most criteria for insurance products without the premiums being high.
Joint Cover or Single Policies
Couples must decide whether to take out a joint life insurance policy or two single policies. A joint life insurance policy only pays out once when the first person dies, whereas two single policies will provide a cash sum to other dependants.