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Blog Post Are You Looking for Life Insurance in the UK?

Are You Looking for Life Insurance in the UK?

Life insurance is desired by a number of people nowadays because of its usefulness and benefits. In the event of death of an insured person, the company provides the beneficiary a specific sum of money. The insured person has to pay a premium each month if he or she wants to avail this service. After a set period expires and the person is still alive, the insurance company would still pay out a sum of money to the beneficiary. It is a legal contract and it is also known as life cover or life assurance in some countries.

There are many types of life insurance policy available in the UK. Most of these types will pay out a specific amount to your dependents if you die before a certain date. But there is one type known as whole-of-life cover that guarantees a payment to your dependents regardless of when you die. This type of insurance policy costs more than other types but it is also more useful. If you’re looking for cheaper options, you may check out term insurance or decreasing-term insurance.

In term insurance, a “term” is defined and according to the policy your dependents are eligible to receive a pay out if you die within that time period. Premium is lower than in case of whole-of-life cover and therefore many people opt for this type of life insurance in the UK. Another type that is equally beneficial is known as mortgage life insurance, which is especially meant to pay off mortgage debts in the event of your death. This is also known as decreasing-term insurance because the premiums are reduced year after year so that they can be tallied with the mortgage payments.

Then there is another type of policy known as increasing-term insurance in which you may decide to increase your payouts each year. The premium will be higher in such a case because the cover is scheduled to rise every year. Another type of life insurance that you must be familiar with is known as renewable term insurance. The rules are the same as for term insurance with the only difference that you can renew it after the fixed time period expires and you’re still alive. You can continue to pay premiums but the amount will be revised when you apply for renewal based on your age and overall health.

Some people also go for joint life insurance, which is meant for couples. If one of them dies, the other one is entitled to receive benefits. Instead of buying two separate policies, this one can be used to cover for both partners. You will only be required to pay one premium instead of two and still be able to benefit from it. Finally, there is a life insurance policy known as death-in-service benefits in which the company promises to give their employee’s family a lump sum payment if he or she dies during service.

Death is inevitable. But it is possible to make sure that your family and loved ones are well taken care of in the event of your sudden death with the help of a life insurance policy. Check out the above-mentioned covers currently available in the UK to decide which one suits your requirements and current circumstances.

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