What type of life insurance policy should I choose ?
A life insurance policy will provide a sum of money for family members should the person whose policy it is die sometime during the length of the policy. The main purpose of having life insurance is so that your family and dependents have some form of financial security. This money could then be used to help pay off the mortgage or other debts and provide an income. The majority of life insurance policies will be for a set length of time and this will usually be based on the length of the mortgage.
What type of policy should I choose?
The type of policy you choose will depend upon your circumstances and needs. If the policy is to be used as cover for a repayment mortgage then you will most likely want a decreasing term life insurance policy.
If however you have an interest only type of mortgage then you will probably want to choose a level term life insurance policy in which the value of the outstanding mortgage balance is the same throughout the term of the policy.
Term life insurance will give you protection for your family until your children are old enough to look after themselves financially.
In some cases you may feel that you require additional cover and protection. This can be done by taking out a critical illness insurance policy to pay out the amount of money insured if you are at some point found to have a critical illness. Make sure that when you take out one of these policies that you have thoroughly read the terms and conditions first so you know exactly what you are covered for.