What are the main types of life insurance ?

Life insurance is a type of insurance in which the insured person will pay a premium over a set length of time. During this time the life insurance company gives insurance cover should you die. There are a number of different life insurances policies available today and you should think carefully about your requirements before settling on one.

Level Term Assurance

Level term assurance is probably one of the most well known policies. With this you pay a fixed monthly premium and a set amount of cover is provided for a fixed term. Should you die during the length of the policy then a lump sum is paid out.

Decreasing Term Life Insurance & Mortgage Protection Insurance

With this type of policy you pay a fixed monthly premium the life cover will reduce during the course of the policy. The majority of people will use this type of policy if they have a repayment mortgage and therefore the amount of cover reduces in line with the repayments.

Critical Illness Insurance

Critical illness cover is helps to provide and protect you financially should you at any point during your policy suffer from one of a number of specified illnesses, total disability or other life threatening diseases. If this happens then you will be paid a lump sum to help pay off any debts that you may have or your mortgage. Often critical illness insurance is bought in addition to term life insurance.

Convertible Term Assurance

A convertible term assurance plan gives you the option to convert to another form of life assurance without requiring further medical evidence.

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