Life Insurance

Defined as 'An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured'. Life insurance is often taken out by individuals who have families and dependants who could suffer financially in the event of your death.

With the competition for your UK life insurance business at an all-time high, their is some great low premiums to be snapped up, as the cost of life insurance cover continues to reside at an historic low.

If you already have life cover, it could be a worthwhile exercise to review your current arrangements, to ensure that adequate protection is in force. The main types and descriptions of life insurance are shown below:

Decreasing Term
Designed specifically to protect a repayment mortgage, the named beneficiary will receive a cash lump sum to cover the outstanding balance of the mortgage. The actual amount paid out reduces as plan goes on.

Level Term
A set amount of cash is payable tax-free for the life of the plan. Mostly used to cover living costs, mortgage payments, children's education and more. Can be taken out individually or as a joint policy. Often referred to as Term Assurance / Insurance.

Family Income Assurance
Provides either an income for your dependants or a lump sum if you should die during the term of the policy. You should note that the income is only paid for the term remaining on the policy, so you may need to make additional arrangements to go on providing an income after the policy expires.

Whole-of-Life
Designed to pay out at the time you die. As long as you maintain the policy there is a guarantee that, on your eventual death, the sum assured (level of Life Assurance cover) will be paid to your Estate.

Endowment Assurance
Provides Life Assurance protection should you die during the term of the policy, but should you survive to the end of the policy term then you may also receive a lump sum.

Mortgage life insurance
Help protect the family home with life cover, which decreases in line with your reducing mortgage loan. Most mortgage providers insist that the borrower is insured to cover the remainder of the loan. (you'll certainly need mortgage protection insurance with an interest only mortgage, although it isn't always the case with a repayment mortgage).

Senior Citizen Policies
The latest addition to the marketplace, offering cover for anyone aged 50-80 years, often without having to provide your medical history.