More Life Insurance Artitcles

Life and Critical Illness Insurance - Good Health?
In common with the rest of Europe, life expectancy in Britain is increasing. A man can now expect to live to 76.2 years and a woman to 80.7 years. This is wonderful news, but unfortunately we also learn that Britain is not keeping pace with most of...Read More

Seven Things To Consider When Taking Out Life Insurance
I know, talking about insurance is extremely boring at the very least, but my life experience has taught me that it can’t be put off. I know so many people who put it off until it’s too late. What then? Isn’t it better to just do it now, and get it...Read More

Tips for Choosing a Life Insurance Company
More than 150 insurance companies offer thousands of life insurance products in the UK. Choosing the right company and right product from this bewildering choice is challenging. Fortunately, there are some common sense guidelines that will help you...Read More

What is Life Insurance?
Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during the policy term, a lump sum is paid out. Life insurance is considered as the cornerstone of financial planning. It is a...Read More

Life Insurance Your Financial Safety Net

Life Insurance Tips And Why You Need It

Life Insurance and Critical Illness Insurance Cancer Tests To Increase Women s Premiums

Life Insurance Policies The Opinions of Whole and Term

What Is Permanent Life Insurance

Life Insurance 101

All types of Life Insurance fall into one of the four groups explained below, which type you use depends on the type of risk you wish to protect and the funds you have available.

Term Assurance

Cash lump sum paid out in the event of death

Straight term assurance is still a very cost-effective way of providing financial protection for the family or business. A lump sum is normally provided when a claim is made which is paid into the estate of the policyholder.

In order to avoid complications with delays in probate or inheritance tax, an appropriate trust can be used so that any payment is made direct to the beneficiaries.

It is also possible to have the cover indexed according to inflation, so that the level of cover remains the same in real terms. Since there is no element of saving, the plans do not acquire a surrender value. If you wish to include this option, you could opt for convertible term assurance.

Family Income Benefit

A regular income paid following death during the term of the plan

This type of plan provides for a regular income to be paid out in the event of the death of the life assured during the term of the policy. With each month that passes, the liability which the insurance companies is taking on decreases by a set amount. This enables the costs to be kept down to a minimum and is often the least expensive plan available.

The benefits can be written in trust to avoid legal delays and any possible liability to inheritance tax.

Mortgage Protection.

This type of plan is also a term policy which covers the declining balance of a repayment mortgage. This enables the cost to be kept to a minimum but make sure that the interest rate figure is high enough for any possible increases in the mortgage rate.

Whole of Life Cover

Provides cover for the rest of your life

The main disadvantage of term cover is that at the end of the term, cover ceases and any new policy has to be underwritten according to the age and health of the policyholder at that time. When a whole of life policy is taken out, the policyholder has guaranteed insurability for the rest of their lives, regardless of any change in their health.

This means that initial premiums are likely to be higher than term assurance cover, but the plan has far more flexibility. It therefore depends on your personal circumstances as to which plan is likely to best suit your requirements.

Critical Illness Cover

Cash lump sum for those who die or have a critical illness

In recent years, the need for protection for those who actually survive serious illness or accident has become more apparent. It has been described as 'life cover for the living'.

Most plans cover the common conditions such as heart attack, stroke and most forms of cancer, but there is variation on more rare conditions. In addition to specific illnesses, it is quite common to have permanent disability cover. If you become permanently disabled and unable to return to work, the plan pays out. There is however, a wide variation in the definition of 'return to work. Some plans would only cover you if you were totally unable to work. Others have an own occupation? clause so that if you were unable to return to your normal occupation, a claim could be made. This is an extremely important fact to bear in mind when selecting your insurer.

Roger Overanout



About the author:

For a one stop information center about life insurance go to www.aboutlifeinsurance.info

You may reproduce this article provided you maintain an active link back to www.aboutlifeinsurance.info

Written by: Roger Overanout

Life Insurance Explained

Mortgage Protection Life Insurance Understanding The Basics

5 Quickest Ways to Lower Your Life Insurance Premium

How To Protect Your Life Insurance Policy While Going Through A Divorce

Life Insurance Premiums Put the Squeeze on Fat People

Getting A Life Insurance Quote Online Q amp A

Life Insurance Apprehensive About Insurance Coverage

Cheapest UK Life Insurance
Most companies will claim that they’re the one with the cheapest UK life insurance rates. While this claim may or may not be true, one thing is certain. Selling life insurance is extremely competitive. Thousands of companies and independent sales...Read More

Life Insurance and Critical Illness Insurance. Cancer Tests To Increase Women's Premiums
Ladies, if your mother or any other female blood-line relatives have a history of breast or ovarian cancer then from next year onwards, you could face higher insurance premiums. You could even be refused cover altogether. When these women apply...Read More

Life Insurance – It’s Not Just About Death
We know the obvious reason for purchasing life insurance, and that is to leave some money behind to our loved ones to cover the costs of funeral and burial expenses, to take care of unpaid debts we leave behind, to act as a supplemental income until...Read More

Life insurance: why there's no need to be a desperate housewife
Contemplating what may happen to your wife (or husband) and children if you die is not likely to be a thought you wish to contemplate. However, avoiding the issue may make life more difficult for your family after your death. Life insurance...Read More

Variable Life Insurance: Risks and Benefits
One of the most popular forms of life insurance is the variable life insurance policy. With variable life, one gets permanent insurance (like whole) along with the opportunity to isolate specific investment opportunities at which premiums are ...Read More

How Are Life Insurance Premiums Decided?
When a life insurance company decides to insure you, they have to make sure it is a profitable transaction for them. There are a number of things that are taken into account to decide an individual’s premiums. These are age, gender, state of...Read More

Life Insurance Is Not About You!
The most important thing in life is family. There are many different groups and organizations a person can belong to, but family is something that a person is connected to by blood and more. Almost everybody has lost a loved one at one time or...Read More

Life Insurance Settlement Options
A life insurance settlement refers to the purchase of the insurance policy before the maturity date or the demise of the policyholder. There are some life insurance settlement companies or brokers whose sole business is the purchase of life...Read More

Three Tips to Get the Best Rates on Life Insurance
Everyone is a bargain-hunter! Everyone hopes to find the best possible prices for all of the goods and services we provide. People search out sales and special deals when making purchases and no one wants to spend more for anything than they...Read More

Term Life Insurance Prices Factors That Can Affect The Quotes You Get

Life Insurance Information

Mortgage Insurance Mortgage Life Insurance

Inexpensive Whole Life Insurance

Term Life Insurance Quotes Made Simple

More Life Insurance Artitcles