Types of Life Insurance Policies That Should Suit you

If we count our possessions to assess our most important assets, our lives would always rank at the highest. It thus makes perfect sense to give it the protection it deserves with a life insurance policy. It is a popular policy as it is, in the UK. It is a positive sign that more and more people are getting down to understand its benefits and apply with the many convenient means and resources available these days.

There are two main types of life insurance policies:

1. Level Term Life Insurance Being the cheapest form of insurance, it is also perhaps the most preferred one. In the event of your death, your family or your dependants or beneficiaries, as who you name in the policy, shall be eligible to receive a lump sum amount upon claim. With not much to spend thus on high premiums, you can have the peace of mind that an insurance policy brings to you. Although this policy is applicable only in case of death of the holder during the term of the policy, the payments remain the same without any worry of hikes for a a fixed term. And this is where the policy derives its name from. The fixed payment for fixed term helps you to calculate your payments till the term applies. However, as soon as the term expires which is generally to the tune of fifteen years, the validity of the policy is over and no insurance claims can be entertained thereafter.

2. Whole Life Insurance: This may prove to be a better deal if you’re thinking from a long-term perspective, although the premium may be on the higher side. This policy has no fixed period and is applicable for insurance claims anytime no matter when the insured person’s life ends. So this policy, as the name suggests, works for your whole life and guarantees a payout when you die.

Apart from availing to these two major kind of life insurance policies, you can also go for add-ons like critical illness cover.

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