UK Life Insurance

Life Insurance is a risk insurance policy that pays a specified monetary sum or pension, to any designated beneficiaries should the insured die during the term of insurance. Monthly or annual premiums are paid to the Insurance company for a predetermined length of time.

Should a person die whilst a Life Assurance policy is in force then the policy will provide a cash benefit to the deceased family. By taking out Life assurance you can provide protection for not only your family but other things like mortgages or loans, it can ensure your dependants do not experience too much hardship for a time after your death. Life Insurance can be taken out to cover yourself or a joint policy can be opened.

Level Term Assurance
This is the most common type of Life Insurance policy providing life insurance cover over a fixed term. The cost is relatively low, and it is generally accepted as a suitable method of providing low cost life insurance cover. It can be relatively cheap to add Critical Illness cover to a life insurance policy.

Convertible Term Assurance
This is a level term life insurance policy with the convertible option added. This permits you to change the life insurance policy to a whole of life or endowment (depending on the insurer and terms offered at the time of exercising the option) at any time within the life insurance policy term. This coversion could be made without the need to provide further evidence of health.

Family Income Benefit
This non investment life insurance policy will pay a regular income to dependants over the remaining term of the life insurance policy if you were to die. Should you have dependants or family that are dependant on your income then in the event of your early death they would recieve some regular benefit. Family Income Benefit is typically payed out annually. A policy usually covers just one person, but in some cases a spouse or partner can be covered under the same policy

Renewal Term Assurance
This type of life insurance policy is generally suitable for key person cover and for those who require cover for a personal loan etc. At the end of it's term (5-years for example), you have the option to renew the life insurance policy without the need to provide evidence of your health at that time.

Whole of Life
This type of life insurance provides cover throughout all of your life. These policies have the option to include critical illness cover and can be set up in a variety of ways.

Who benefits from Life Insurance
Life Insurance would provide the financial support for your family. It is normal to ensure that your partner and children are provided with sufficient funds to meet any funeral expenses, pay off any outstanding liabilities (mortgage balance, personal loans, credit card balances etc), and have a sufficient cash sum to replace any lost income until the children would no longer be financially dependent on the surviving partner. Life Insurance would help to make your family's life more bearable for a time after your death.