What is life insurance?
A life insurance policy is an insurance contract. In exchange for monthly payments, the contract offers to pay a lump sum of cash if the person who is insured dies.
If you want to make sure your family would be OK if you died and you don’t have the assets to leave them, spending £5 a month to leave something would help.
The amount of cover can increase or decrease over the policy term, it's up to you to choose which type of cover you’d like.
Plans can include a terminal illness benefit. That means the policy will pay out if you are diagnosed with a terminal illness and aren’t expected to live for more than 12 months.
Types of cover
Increasing cover - protect your family
As time goes by, it’s expected that the cost of living will go up. By choosing increasing cover you can help protect against the future effects of inflation.
Your cover will increase each year in line with inflation. If your cover increases, you may have to get a new life insurance quote, or your premium may stay the same or increase.
Decreasing cover - protect your mortgage
The cover amount decreases each month broadly in line with a repayment loan, such as a mortgage, using a fixed interest rate. The premiums are calculated when you take out the policy and remain the same over the length of the policy term.
These covers do need reviewing regularly as it is often the case that a level term policy would be better as you’re more likely to need a pay-out towards the end.
A Critical Illness Plan pays out if you are diagnosed with a critical illness and are signed off work. You’ve got to be really careful with these as a lot of the cheaper premiums do not cover certain conditions and it is almost always better to look for comprehensive cover.
You can buy a Critical Illness Plan on its own or with a Life Insurance Plan.
We will help you decide what is right for you and, being independent, make sure you get the very best value from the entire marketplace.
Whilst it may seem complicated, with us we can make it easy by advising as to which options you should consider and getting the best life insurance quote from the whole market.