| These days, it seems there are insurance policies | | | | the diagnosis of a terminal illness. If you're considering |
| available for just about everything: car insurance, | | | | life insurance now, or in the future, it's important to |
| home insurance, travel insurance, pet insurance, life | | | | understand what each type of policy provides. |
| insurance - the list appears to be endless. Some | | | | - Level term insurance is the most common form of |
| types of insurance, such as car insurance, are | | | | life insurance and is designed to pay out a lump sum |
| required by law if you intend to drive on the public | | | | of money in the event of the policyholder's death. |
| highway, but for most people other forms of | | | | The policy runs for a fixed term, normally a minimum |
| insurance are an optional extra. | | | | of 10 years, and the sum assured is guaranteed, and |
| However, it's important to note that arranging | | | | remains unchanged throughout the life of the policy. |
| insurance policies for other lifestyle items can provide | | | | - Decreasing term life insurance is also known as |
| you with peace of mind should something | | | | mortgage protection cover and is regularly used to |
| unfortunate happen. For example, taking out | | | | protect capital and interest payments on a mortgage. |
| home-contents insurance can help cover the cost of | | | | The sum assured decreases during the duration of |
| replacing your household goods, while pet insurance | | | | the policy. |
| can cover the cost of veterinary bills and treatments. | | | | - Critical Illness insurance pays a lump sum if you are |
| But perhaps one of the most important 'optional' | | | | diagnosed with a specified illness, or suffer loss of |
| insurances you should consider is life insurance. | | | | limb and can be added to term insurance policies. The |
| Whilst no one likes to think about death, life insurance | | | | sum paid out by this policy can be used for any |
| - sometimes known as life assurance or term | | | | purpose. |
| assurance - is a policy which pays a lump sum in the | | | | - Family Income Benefit insurance pays a regular tax |
| event of the policyholder's death, helping to protect | | | | free income for your dependants throughout the |
| loved ones and dependents against financial burden. | | | | remainder of the policy term. Payouts on this type of |
| Coming to terms with the loss of a loved one is | | | | life insurance can be structured to correspond with |
| never an easy thing to do, and the added financial | | | | changes in inflation, although benefits usually remain |
| burden can make it increasingly difficult to cope. | | | | constant. |
| However, a life insurance policy can help cover such | | | | With the cost of life insurance premiums plummeting |
| costs as mortgage repayments, salary replacement | | | | in recent years due to improved life expectancy and |
| and childcare costs, paying off debts or even | | | | increased competition between policy providers, |
| providing for future education for the kids. Moreover | | | | arranging a life insurance policy needn't mean breaking |
| it can help ensure your family can maintain the | | | | the bank or compromising on cover. Financial |
| standard of living to which they were accustomed to. | | | | comparison sites can help you to find the best deals |
| Life insurance comes in various forms, the most | | | | on life insurance - from premium prices to levels of |
| common being level term, decreasing term, critical | | | | cover - and with only a few clicks, you can insure |
| illness and family income benefit policies. Most are | | | | and safeguard your family's future for when you're |
| available as both single and joint life policies, with | | | | no longer around. |
| most policies including benefits such as paying out on | | | | |