Types of Life Insurance

Convertible Term Life Assurance. 

Convertible term assurance plans are those term assurances that have an option to convert to another type of life assurance offered by the same provider, such as endowment, without requiring further medical evidence.

Whichever type of insurance you think you need, it certainly pays to shop online for life insurance quotes - we negotiate the best rates with the top UK providers, to make it easy for you to select the best policy at the best price.

Level Term Assurance/Level Term Life Insurance. 

Level Term Assurance is the most basic type of life assurance. For fixed monthly payments, the amount of life cover  -also known as the sum assured - is guaranteed for a fixed term. The lump sum is paid out if death occurs before the policy ends.

Decreasing Term Life Insurance & Mortgage Protection Insurance. 

With Mortgage Protection Insurance (also known as Decreasing Term Assurance) you pay a fixed monthly premium but, instead of the life cover remaining level, it gradually reduces over the term of the policy. It is most commonly used together with a repayment mortgage and the sum assured reduces broadly in line with the amount outstanding on the mortgage over the term. The reducing life cover means that the cost of this type of policy is lower than that of Level Term Assurance.

Income Protection Insurance

There are several different versions of income protection insurance - so look carefully at the cover you will be receiving.   If you want unemployment insurance, as well as accident and illness, then you should really be looking at ASU.   Employers often cover their employees for accident and illness - so review the package you received when you started before doubling up on the insurance.

Unemployment Insurance | Redundancy Insurance | ASU

These policies cost a bit more than standard income protection, but with the added bonus of unemployment insurance, you can be covered in case you employer suddenly restructures or merges with another company and decides to make the old team redundant - a very common occurence unfortunately.

Critical Illness Insurance

Critical Illness Cover is designed to help protect you financially by paying you a lump sum if you suffer from one of a number of specified illnesses - usually including heart attacks, cancer, strokes, major organ transplants, permanent and total disability and other life threatening diseases. The benefits can be used for any purpose, for example paying off debts, such as the mortgage; being able to change to a less stressful job without worrying about the drop in income; adapting the house or car to accommodate a wheelchair or having a good holiday to recuperate. Critical Illness can also be bought as an add on to Term Life Insurance.

Family Income Benefit Insurance. 

Rather than paying out a lump sum should you die during the selected term, a Family Income Benefit policy pays out a regular tax free income for your dependants for the remainder of the plan term. The amount of income benefit usually remains level over the plan term selected, although you can request that benefits increase in line with inflation as an optional extra. As an example, if you select a £15000 per annum family income benefit plan over 25 years, and die at the end of year 10, then your dependants will receive £15,000.00 every year for the remainder of the term i.e. 15 years (£225,000.00 in total).

For more need to know information: Buying Life Insurance - 10  things to remember is a good overview.

Benefit Types

Death Benefit Only  - A payment of a lump sum upon the death of the life assured

Critical Illness Only   - Also called as 'dread disease' cover. Such policies can be stand alone or written as an add-on to term assurance. They will pay out a lump sum in the event of a qualifying illness being diagnosed e.g. certain cancers, heart disease or multiple sclerosis.

Death or Earlier Critical Illness  - Pays out a lump sum, so that the life assured is protected for both death or critical illness. The policy pays out on the first event and then ceases.