Choosing the Best Life Insurance Option for You

Life insurance in the UK is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of invaluable benefits to UK consumers.

Level Term Life Insurance

Level term life insurance is the most popular type of life insurance policy with UK consumers, and this may be because it is also the cheapest form of insurance. With level term insurance, you and your family can enjoy peace of mind at an affordable price. If you die during the term of this insurance policy, your family will receive a lump sum payment, which can help to cover a number of costs as well as provide some degree of financial security at what will inevitably be a difficult time. The money could assist with costs such as:

• Mortgage repayments

• Funeral costs

• Education costs for the children

• Day-to-day living

One of the reasons that level term life insurance is a fair bit cheaper than other life insurance is because the insurer only has to make a payment if the insured party passes away, and even then the insured party has to die during the term of the policy for the next of kin (or the named beneficiary) to be eligible for a payout. One of the great things about levels term insurance is that you can benefit from cover for just a few pounds each week, and because the payments remain the same throughout the term of the policy, you'll never have to worry about rising payments.

The reason why a level term insurance policy is so called is because the repayment remain level throughout the term of the policy, so you will never have to worry about the cost of your policy rising. The policy is also taken over a fixed term, which is where the 'term' part of the policy comes in. This means that you can enjoy easy budgeting and low cost repayments, and you'll know exactly how long you will be making payment for. On the downside, once the policy expires you will not be able to reclaim any money and the policy will be cancelled, so you will then need to look at taking out alternative life insurance cover.

The average term of a level term life insurance policy ? unless otherwise specified ? is fifteen years. There are a variety of factors that contribute to the cost of the policy such as whether you go for the most basic package or whether you include a bolt-on such as critical illness cover, whether you are a smoker, your general health, and the term over which you take the policy out.

Whole Life Insurance

Unlike level term life insurance, whole life cover offers a guaranteed payout, which to many people makes it better value for money in the long run. Although the repayments on this type of cover are more expensive than level term insurance, the insurer will make pay out whenever the insured party passes away, so the higher monthly payments will guarantee a payout at some point.

There are a number of different types of whole life insurance policies, and consumers can select the one that best fits their needs and their budget. As with other insurance policies, you can tailor-make your whole life insurance cover to include additional cover such as critical illness insurance. The variations on whole life insurance cover include:

Non-profit UK whole life insurance policies: This is the simplest form of whole life cover, and enables you to enjoy the convenience of level payments through the term of the policy until you die. Upon death, your family received a payout and the policy becomes null and void. If you want to pay a little extra, you can take out a policy that is fixed over a specified term, which means that you will only be making payments for a certain amount of time, but your family will still receive a payout when you die.

With-profit UK whole life insurance: This is a cover and investment type scheme, where your monthly payments are split between your cover premiums and the investment side of your policy. You will enjoy a guaranteed assured sum, and you may find that your insurer adds discretionary bonuses.

Low cost UK whole life insurance: One of the cheapest forms of whole life cover, this type of policy features a decreasing term plan, and the policy is combined with a profits fund. As bonuses are added to the profit side of the policy, the policy term decreases. This provides a cost effective solution for those that want to enjoy the benefits of whole life insurance cover without having to make high monthly payments.

Unitised UK whole life insurance policy: When you purchase this type of whole life cover, you will also be investing in with-profit units. This means that when the insurer makes a payout, the sum awarded will be dependant upon the value of the units in comparison to the value of the death benefit (the payout will be based upon whichever is the highest in value). Each month units are cancelled in order to increase levels of death benefit cover, with reviews carried out from time to time to ensure adequate levels of death benefit cover.

Summary

Both level term insurance policies and whole life policies offer valuable peace of mind to policyholders. The cost of this type of life cover is a small price to pay for the peace of mind that comes with being protected, and you can increase this peace of mind by adding extras such as critical illness to your policy for just a small extra fee.

As a nation, we like to insure just about everything we can?our cars, our homes, our belongings, our pets, and even our credit repayments. It therefore makes sense that we should insure the most important thing of all ? our lives.

About The Author

Claire Bowes is a successful freelance writer and owner of http://www.a1-life-insurance-quotes.co.uk where you will find further information on http://www.a1-life-insurance-quotes.co.uk/term-life-insurance.html http://www.a1-life-insurance-quotes.co.uk/whole-life-insurance.html and http://www.a1-life-insurance-quotes.co.uk/mortgage-life-insurance.html.

---

Powered by Feedzilla

Websites For Sale

Master Resell Rights Ebooks

Terrorism: Acts of Terrorism: When Will Insurance Respond?

Insurance policies provide financial protection in a broad range of... Read More

Young Driver Car Insurance

It has become increasingly difficult to get young driver car... Read More

Why Boat Insurance Doesnt Help A Lousy Sailor

For thousands of years men have sailed the seas. From... Read More

Underinsurance Can Spell Disaster For Homeowners

Insurance is meant to give homeowners peace of mind, but... Read More

Health Insurance 101 for Individuals and Families

The changing healthcare and health insurance landscape in the United... Read More

Car Insurance No Claims Bonus Explained

No Claims Bonus is a term used to describe the... Read More

Life Insurance Beneficiaries

Naming a beneficiary for your life insurance policy can be... Read More

Taking The Mystery Out Of Long-Term Care Insurance

Here's the good news: with improvements in medical technology and... Read More

Health Insurance Providers Online - Benefits to Applying Online

Health insurance providers are going online to find new customers.... Read More

Health Care and Health Insurance Costs Can Be Controlled Through Lifestyle Choices

As you probably know all to well, the cost of... Read More

How to Match the Right Insurance Policy to the 4 Stages of Life

As we go through life our needs change. A Young... Read More

Business Insurance ? And What You Need To Know

Getting your business up and running is exciting, challenging and... Read More

How Is Your Auto Insurance Policy Price Determined?

The average auto insurance policy price is derived from a... Read More

Canadian Funeral Insurance: Our Final Gift to Those We Love

Most of us don't like thinking about our own funerals,... Read More

How to Shop for Individual Health Insurance

If you find yourself in the position of shopping for... Read More

Cheap Health Insurance Rates and Personal Health Insurance

If you've been out of school for a couple of... Read More

Term Life Insurance and Permanent Life Insurance

Term insurance and permanent insurance are two basic types of... Read More

The Importance of Travel Insurance

You've finally saved enough to go on that dream vacation... Read More

What Does Buildings Insurance Cover?

You will find that your lender will insist that you... Read More

What Are The Auto Liability Insurance State Minimums For My State?

As you shop online for the best auto insurance deals... Read More

Life Insurance: Why Theres No Need to be a Desperate Housewife

Life insurance looks set to make a comeback in the... Read More

An Intro To Life Insurance

There are many options available for life insurance, and for... Read More

Japanese Overseas Travel Insurance

If you are an expatriate planning on long-term residence in... Read More

I Was In An Accident, Will My Car Insurance Rates Go Up?

You were on the phone, got distracted and before you... Read More

Accident Insurance Claim Personal Injury Insights

There's nothing that has a greater impact on evaluating a... Read More