There are a lot of misconceptions about life insurance. For example, perhaps you may think it is too costly, not needed, not for non-breadwinners or you are too young to think about it.

These are statements that we come across regularly when having discussions regarding life insurance options. Unfortunately, these misconceptions could put both yourself or your loved ones in a vulnerable position if unforeseen experiences arise in the future.

By investing in life insurance, you can provide financial security to those that matter the most in your life as well as providing you with the peace of mind that they will be well taken care of.

What is life insurance?

Life insurance is a contract between the policyholder and insurance company that pays out a lump sum to your dependants if you pass away during the term of the contract.

There are a number of different factors that can affect the cost of your life insurance such as your age, health and lifestyle.

What different types of life insurance product are there?

There are four main types of life insurance product that we are able to help our clients with. This is: whole-of-life and term insurance. We have presented a short summary of each type below:

Whole of life insurance

Whole of life insurance can also be called permanent insurance and it pays a death benefit when you die, no matter what age.

There are three main types of whole of life insurance and this is traditional whole life, universal life and variable universal life. There are also variations within each type.

Term insurance

Term insurance can also be known as term assurance and this is a life insurance product that provides cover at a fixed rate of payments for a given period of time; this is called the relevant term.

There are a few options when it comes to term insurance and this is ‘level term insurance’, ‘decreasing term insurance’ or ‘increasing term insurance’.

Level term insurance provides a consistent level of pay-out, decreasing term insurance is an option for those buying to have the potential payout fall year after year (most commonly to reflect things such as falling mortgage debts).

Increasing term insurance means that payouts increase every year in line either with an index such as the Retail Prices Index (RPI) or Consumer Price Index (CPI) or by a fixed percentage.

Do you have questions about how life insurance could benefit you?

Our team have the expertise you need to be able to provide advice and guidance about which life insurance product could be right for you. Our team is on hand to offer advice and guidance and you can either call us on 01322 553282 or contact us online.