Life insurance guide
In this guide...
- What policy?
- I'm too old
- Level term
- Decreasing term
- Increasing term
- Whole life
- Endowment
- Convertable term
Quick links
What life insurance policy is right for me?
Deciding which life insurance policy is best for you takes some thought. You need to think about how much cover you will need and what you intend to use it for.
Here are some common examples:
- Mortgage repayment or settlement
- Education fees
- Substitute the main earner's salary
- Childcare fees
- Debt repayment or settlement
There are also many different types of life insurance policy for you to consider, but don't worry, we have picked out the most common for you and given each a brief overview below.
I'm too old to take out life insurance...
No you're not! Whether you're looking for life insurance for over 60s, life insurance for over 40s or life insurance for over 50s there is a life insurance provider that can help.
Level term life insurance
The most common type of life insurance policy. Regular payments are made for a set number of years (the term) and the policy pays out a lump sum when the policy holder dies. If the level term life insurance policy expires and the policy holder is still alive then no payment is made.
Decreasing term life insurance
Also known as mortgage protection cover, is where the final lump sum decreases over the life of the policy. Most often used to protect capital and regular mortgage repayments.
Increasing term life insurance
As the name suggests, this is the opposite to a decreasing term life insurance policy. This type of policy ensures that any negative impact to your policy caused by inflation is balanced out with a positive sum, thus increasing.
Whole life insurance
Providing regular premium payments are made, whole life insurance guarentees a lump sum pay out when the policy holder dies, at whatever point in the term that may be. Because a pay out is guarenteed the monthly premium is usually more expensive that that of a regular term life insurance policy.
Endowment life insurance
An endowment life insurance policy is essentially a saving scheme with life insurance benefits. If the policy holder has not died by the end of the term the policy pays out any savings accrued. However, if the policy holder does die during the term then the policy pays out a lump sum plus any savings accrued.
Convertible term life insurance
The same as level term life insurance but at the end of the term you may choose to convert your policy to a whole life insurance or endowment life insurance policy.
How do I get life insurance?
For a life insurance quote or to compare life insurance please take a look at our life insurance providers section.