Life insurance plan uk
What is a life insurance plan uk?
A life insurance plan uk is life insurance, offered in the UK. Life insurance is an insurance product that pays out a lump sum to a customer’s family, should that customer die.
A life insurance plan uk can be offered in many different forms, but the two most common are term life insurance and whole life insurance.
Term life insurance plan uk
A term life insurance plan uk is a life insurance plan offered over a particular term. This term is generally the length of a mortgage, but can also be until a certain birthday, or for a set number of years.
Term life insurance is rarely offered beyond a customer’s 60th birthday, so the majority of customers outlive their life insurance, and never receive a payout. The advantage of this is that it makes the insurance cheaper, and this is why term life insurance is the most popular form of life insurance available in the UK.
Whole life insurance plan uk
A whole life insurance plan uk works in the same way as term life insurance, in that a customer pays for the insurance over a set term, but whole life insurance offers a payout, whenever that customer dies.
Whole life insurance plans uk are far more expensive because nearly every customer will receive a payout eventually, so the insurance company need to charge you at least your pay out in premiums charges through the time you pay for the insurance, or they won’t make any money.
Why do I need a life insurance plan uk?
Life insurance is really important for anyone who has any kind of financial responsibility. Should you no longer be around to earn the money to pay for that financial responsibility, what will happen to it? In the case of a mortgage, it may be that the house is repossessed, doubling your families agony.
In the case of children, what will their quality of life be like, without you around to provide for them?
With a life insurance plan uk, you can be sure that you will leave money behind to pay off a mortgage and look after your children, even when you are gone so that at least financially, your family will be looked after.