A Beginners Guide to Life Insurance
Death is a subject that most of us don't like to ponder on too often. Unfortunately, death is something that happens to us all, so it pays to be prepared.
Having adequate life insurance provides you with the peace of mind in knowing that in the event of your death, loved ones will be provided with financial support.
The different types of life insurance available include…
Level term insurance - this type of cover is designed to pay out should the policy holder die during the term of the policy. The payout amount is guaranteed to remain the same throughout the insurance term.
Decreasing term life insurance - the insurance amount made available decreases at the same rate that the mortgage is paid. This type of insurance ensures that in the event of terminal illness or death, a lump sum that can adequately cover the mortgage is made available. For example, if the policy holder has a 25 year mortgage for £125,000 and the policy holder dies 20 years into the mortgage with £10,000 left to pay, then the life insurance would pay that remaining £10,000
Convertible term insurance - this is the same as level term insurance with the added option to revert it to endowment or life insurance.
Renewable term insurance - this option allows you to renew the police on the date it expires without the need of taking a health review.
Index linked term insurance - this policy means the life insurance payout increases each year in relation to the RPI (Retail Price Index).
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Learn about the Life Insurance Application Process
Learn about the life insurance application process in this video with Bob Ley from the AIG insurance company. (01:09)
How to Decide on Your Life Insurance Beneficiary
Learn how to decide on your life insurance beneficiary in this video with Bob Ley from the AIG insurance company. (01:32)
How Health Factors into Life Insurance Coverage and Cost
Learn how health factors into life insurance coverage and cost in this video with Bob Ley from the AIG insurance company. (00:43)
For What Periods Should You buy Life Insurance for
Learn the periods of time should you buy life insurance for in this video with Bob Ley from the AIG insurance company. (00:21)
Learn about the Most Expensive Type of Life Insurance
Learn about the most expensive type of life insurance in this video with Bob Ley from the AIG insurance company. (00:22)
Having adequate life insurance provides us with the peace of mind in knowing that our family will have that financial support in the event of our death. This article explains the different types of cover available.
If you are thinking of buying life insurance in the near future here is a quick guide to the types of insurance you can buy and the terms used in the life assurance market.
Term assurance policy designed for a limited time-period insurance, can work out very well for your special short-term goals.
This article is to provide you with feedback to some of the most common questions usually asked about life insurance.
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