The titles of the different forms of life insurance can be off-putting enough and quite honestly life insurance is something that most people put to the back of their minds. Something they’ll get around to “one day”. If it ever crops up for discussion, you find that everyone has different views on the various schemes and everyone seems to be covered for different things. Or at least they think they are, as once they’ve taken out the cover, they promptly forget exactly what it is they’re covered for!

Basically the whole point of life insurance is that it’s a product which pays out on your death. That’s really simple, but what is less easy is the choice of the right type of policy and making sure that it’s going to pay out enough money to support the people that depend on you. If your family rely on you for financial support right now, the need will still be there, even if you’re not. So what you’re looking for is the right policy for you, to provide ample cover at the best possible price.

The main policies are level term insurance, which is also available with critical illness cover and decreasing (mortgage) term assurance, which is, again, available with critical illness cover. Critical illness cover is also readily available as a stand-alone product.

First of all you should think about exactly why you’re considering this policy. If it’s simply a case of ensuring that your mortgage would be cleared if you died, then a decreasing term policy is what you should be looking at. The sum insured will decrease as the mortgage decreases, and the cover ends at the same time as the mortgage is paid off. If you’re looking for a way of ensuring that your family have the means to continue with their present life style then you’re going to need some level term insurance where you know exactly what they’re going to get - once you’ve established what they need.

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Tags: Life Insurance

This entry was posted on Friday, December 4th, 2009 at 8:45 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.