Life insurance can help protect your financial commitments and help make sure you leave your loved-ones and dependants with enough money to stay secure in the future. With this in mind, it could be one of the most important decisions you can make.
Basic Life Insurance
For basic cover, you have a few options to choose from:
Level Term Assurance
You’ll pay the same amount every month and be paid in full if you die at any point during the term. Read full wording of any policy to understand any specific terms and conditions that may apply
Increasing Term Assurance
The amount of payable on death increases every year during the term of the policy, which means you’ll receive additional cover in line with increases in income and inflation.
Decreasing Term Assurance
The amount payable on death reduces every year during the term of the policy which can make it a cost-efficient choice for mortgage protection cover.
Mortgage Protection Assurance
Similar to decreasing term assurance, here, the lump sum reduces in line with the outstanding mortgage balance over the term of the policy.
Income protection Insurance
If you work, this type of policy helps protect your income and pays out a set amount if you can’t work, meaning your financial commitments are covered when you really need it. Certain circumstances may be excluded and the policy may only pay-out for a set amount of time - so it's worth checking the details.
Critical Illness Insurance
If you can afford it, critical illness cover is designed to pay a tax free lump sum if you are diagnosed as having a serious illness, such as cancer or a stroke, which stops you from working. It offers peace of mind that should the worst happen, your financial overheads and medical bills could be covered. Some medical conditions may be excluded - so check the policy wording for a full list of the illnesses that would be covered.
Family income benefit
This is one of the cheapest types of life insurance policy and the perfect choice for young families. If you die, it provides a regular, tax-free, monthly income for your loved-ones. Again, check the exact details of any policy you're thinking of buying.