Services Insurance Life Insurance
| Life Insurance |
|
Life Insurance policies pay out if you die within a specified period. This is usually the cheapest way to provide financial protection for your family in the event of your death. Why do I need life insurance? Coming to terms with the loss of a loved one is never an easy thing to do and adding financial burden to the grief can make coping increasingly difficult. Receiving a lump sum of money can help to support your family or even a business partner after you die. Some of the reasons to take out life insurance could include:
Level Term Level term assurance pays out if you die or, as in the case with some policies, you are diagnosed as having a terminal illness during the term of the policy. If you live to the end of the term, the policy expires and no payment is made. Similarly, if you stop paying the premiums at any time. Decreasing Term Assurance The lump sum payout on offer with decreasing term assurance, as you might guess, decreases in size over time. The advantage of the reducing life cover under this type of policy is that premiums are likely to be lower too. Decreasing term assurance is also described sometimes as mortgage protection insurance. Convertible Term Assurance The sum assured stays the same for the term of the policy. However, for an additional cost you will have an option to convert this original plan, or part of it, to another type of policy such as an increasing term assurance, a whole of life policy or an endowment, without further medical evidence being required. Family Income Benefit Family Income Benefit (FIB) provides a tax free regular income which is paid out for the remaining term of the policy if you die. FIB can provide a replacement income and may be index-linked to inflation, so that cover remains the same in real terms. If you live to the end of the term, the policy expires and no payment is made. Death in Service Benefit Death in service benefit is the name for cover, which can be provided by your employer. If you die while employed then it will typically pay between two and four times your salary. |