The Cheapest Life Insurance understands that choosing the right life insurance is vital to you finding the best cover at the cheapest rates.
Therefore, in today’s blog, we thought we would run through some of the types of life insurance and what they actually mean.
It is important to note that the right type of life insurance for you will depend on your personal circumstances and needs, but our blog should at least give you a general idea as a starting point.
So, what types of life insurance are there?
Broadly speaking, life insurance covers five areas…
- Critical Illness Insurance
- Level Term Insurance
- Mortgage Protection Insurance
- Over 50s Guaranteed Insurance
- Whole of Life Insurance
Critical illness insurance
In basic terms, critical illness insurance offers your family a financial safety net should you become ill with a critical illness.
Different insurers determine what kinds of illnesses are critical.
What critical illness insurance offers most is a sum of money if you are diagnosed with an illness that is deemed critical. This can make a big difference if you are no longer able to work or pass away, giving those you love the most some kind of support when you are no longer around.
Level Term Insurance
Level term insurance basically means you are insured for a fixed amount over a specific number of years. The premiums stay the same throughout the duration of the policy, which can be useful if you want to keep your spending in check.
Level term insurance can help your family pay for living costs such as mortgage repayments, school fees, childcare fees and in fact, any kind of living cost.
Mortgage Protection Insurance
This is a fairly simple type of insurance and basically covers your mortgage in the event of you passing away.
You can usually get good deals going through life insurance comparison websites as they can search the market for you, giving you more than one quote to consider.
Obviously a mortgage is a large expense and if you are no longer around, that could mean your partner and even your children have to cover the cost of the mortgage with less income.
Having mortgage protection insurance offers a way to pay the mortgage off, which can be a very comforting security net for those who you love, meaning they don’t need to struggle financially or worst still – have to move.
Over 50′s guaranteed insurance
Over 50′s guaranteed life insurance offers an affordable way cover costs associated with someone passing away.
It can provide a security net for your partner or children and help to pay any unpaid bills and of course funeral costs when you are no longer around.
Whole of life insurance
Whole of life insurance is basically a type of insurance that covers you for your entire life. You must pay your monthly payments every month, but so long as those are up-to-date then should something happen to you, your family or beneficiaries will receive a lump sum of money (tax free).
This kind of insurance can suit lots of people but it is important to remember that you could end up paying more in than you will get back.
However, for peace of mind and the knowledge that your family will not have to struggle should you pass away, it does offer a very practical way to protect them, at one fixed cost per month.
Getting the best deals on life insurance does not mean you need to compromise on the level of cover. Very often, using a life insurance comparison service allows you to get quotes from a range of providers all in one place.