When considering most types of insurance policies, it can be easy to see if and why you need them.
You insure your car because the law says you have to. You insure your home contents because if you were burgled it would cost far more to replace everything than you would pay in insurance premiums.
It is usually pretty simple to figure out how much you want to insure these things for and for what length of time. When it comes to life insurance however, things are different.
The stakes are much higher, and you really hope your policy won’t get cashed in. Whether you purchase your life insurance from lifeinsurance.org.uk or another supplier makes little difference – it’s the type of policy you choose that affects the way it pays out.
Level term assurance is usually the cheapest type as it is also the most straightforward. You choose an amount of time for the policy to run for and agree on the lump sum payment you want making to your heirs should you die within that time period.
The insurance company will assess the chances of this happening based on lifestyle and family medical history before they set the premium amounts. For example, a smoker will always pay higher premiums than a non-smoker, as will someone with a family history of diabetes.
The healthier your lifestyle the cheaper your life insurance will be. With this insurance the payout will be the same amount no matter when you die.
If your concerns are more based around debt than death you would probably be better of with something such as income protection from lifeinsurance.org.uk. This covers your usual monthly earnings if you are unable to work for an extended period of time due to critical illness or injury.
Whatever type of insurance you want to look into, checking out comparison sites first can be a big help, not only to get you the best deal but also to explain what all the jargon means.
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