What is Life Cover and how does it work?
Life insurance, which can also be known as life cover or life assurance, is a product designed to protect your loved ones’ finances should you pass away during the term of the policy. It’s there to ensure that an already difficult time needn’t be made more so with the added financial burden that could ensue from a loss of income. It can help them deal with everyday money worries such as household bills, childcare costs or mortgage payments.
The amount of cover you’ll receive, and the premiums you’ll have to pay, will depend entirely on your individual circumstances and the kind of policy you choose. Your life insurance quote will take into account your medical history, age and lifestyle factors, and typically speaking, the younger and healthier you are, the cheaper your quote will be.
The two main types of life insurance are term life insurance and whole of life insurance. When you take out term life insurance, there is usually a maximum term you can apply for, and could pay out a cash sum if you die during that period of cover. This is the type of life insurance that we can offer without advice and you can choose between Life Insurance or Decreasing Life Insurance.
Life Insurance vs Decreasing Life?
Decreasing Life Insurance is often used to help protect a repayment mortgage because the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
Whereas our Life Insurance is usually chosen to help financially protect loved ones. The cash sum could be used by your family to help cover everyday living expenses such as household bills, rent or childcare or it could be used to help pay off a mortgage.