Your Guide to Life Insurance
Choosing and applying for life insurance can be a confusing process. Unlike most other insurance policies, many people go into the application process unaware of what they are actually looking for, and how to get what they want.
At financialAdvice.co.uk, we can help you to find the right policy, and provide you with all the information you need to complete the application process, putting things into plain English and getting you the cover you need. All you have to do is tell our advisors what you are looking for, and we will get back to you for free within 60 minutes.
For those looking into life insurance for the first time, here are some FAQ’s that might clear some lingering issues up.
Do I have to have Life Insurance?
The quick answer to this is no. There are actually fewer types of insurance that you are legally required to have than you might think, the most obvious of which is motor insurance. However while you may not ‘have to’ have life insurance, buying it could be one of the smartest things you ever do.
You really only have to think about your family and how they might cope in the unfortunate event of your death. If you have children still within your care it is particularly important, and by paying a premium every month you could provide them with an invaluable sum of money upon your death that would give them a massive boost once they leave home or start higher education.
Are there different types of Life Insurance?
This is where it gets a little more complicated, and that is why it is important to get professional advice before completing the application process.
There are two types of traditional life insurance. These are known as ‘term’ insurance and ‘whole of life’ insurance.
Term life insurance is basically a policy that lasts for a whole number of years, the amount of which you specify upon application. There are two types of term life insurance, known as level term and decreasing term.
Term Life Insurance – Level Term
Level term life insurance pays out a level amount if you die during the fixed term. You choose how long you want the policy to run for, and the payout and your premiums are calculated accordingly.
Term Life Insurance – Decreasing Term
This insurance is designed to pay off an outstanding debt or loan, and is commonly known as ‘mortgage life insurance’. The amount you get as a payout falls over time, in line with you paying off the covered debts or loans.
Whole of Life Insurance
Whole of life insurance differs from term life insurance in that it is designed to last until you die; no matter how old you are.
Aside from the traditional life insurance, many companies also offer a tailored product called over 50 life insurance. This is aimed at the market of those over the age of 50 who are looking to leave a smaller cash sum behind for their family in the event of their death. This sum will usually be used to pay for their funeral, or to clear any outstanding debts. Over 50 life insurance is similar to whole of life insurance in that it runs until the death of the assured.
How to choose Life Insurance
Choosing the right life insurance policy is not easy, and even when you have chosen there are still so many things you might need to consider. Do you need critical illness cover? How long do you need the policy to run for? Do you need joint insurance with a partner? The list really does go on, and in order to get the answers you need you are strongly advised to seek professional help. After all, this could be one of the most important investments you ever make.
Where can I get Life Insurance?
There are many providers available, but going to these providers directly could be particularly confusing as we have already discovered. Here at financialAdvice.co.uk we can put you in touch with the right people and help you to make the right decision by running through all of your options with you. We will find you a provider who will give you the cover you need, and with that will come peace of mind, knowing that your family is protected in the event of your death.
All you need to do is to ask your desired question in the box above. The more detail you add to your question, the easier we will find it to help you. Once your question has been submitted it will be directed to our team of specialist life insurance advisors who will get back you within 60 minutes with your free answer. Alternatively you can call our team of financial advisors on 0800 092 1245
Ask us a question today and an advisor will get get back to you promptly with answers that are clear, easy to understand and free
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