Different Types Of Life Insurance
Life insurance companies in the UK offer two main types of policies. Term life insurance and whole life insurance.
These two types of insurance policies have their differences but basically they offer a payment after the demise of the insured.
What is Term Life Insurance:
* This is the cheapest form of life insurance coverage available. The insurer can usually find discounted premium payments.
* Remaining surviving family member will receive steady income pay-out rather than a lump sum of money until the policy funds run out.
* As inflation rises, the level of coverage offered and premium payments can also increase.
* If a life insurance policy is attached to a mortgage or high loan amount, the policy can be reduced as the loan reduces.
* Some UK life insurance companies allow the insured the option to interchange their term coverage with whole of life insurance
What is Whole of Life Insurance:
* This type has the highest premium payment method of life insurance coverage as the insurance companies are required to pay the full amount of coverage.
* Some policies even require premium payments until the insured’ s death. Other policies end premium payments when the holder reaches a certain age.
* Plans can be taken out as a Maximum basis, where a high level of coverage is given for a monthly premium.
* There is also a Standard basis which gives the holder a lower level of coverage as the premium amount remains constant throughout the policy term.
