|
Life Insurance pays a cash lump sum to you or your family if you die during the policy term.
Life Insurance is also called "Term" Insurance because a policy only lasts for a pre-determined length of time - its "term".
Not many Life Insurance Companies will offer life insurance policies for less than 7 years - and most people take them out over 20/25 years. Most Companies will not allow you to take out insurance with them over the age of 65 but a few will go as high as 70.
All the best Life Insurance policies will include Terminal Illness cover at no extra cost. Terminal Illness cover is a provision which pays out if you are diagnosed with an illness from which a Doctor expects you to die within 12 months of diagnosis. The insurance would not wait for you to pass away before paying out.
Life Insurance policies can be for one or two people (that's called a "joint" policy). With joint policies, most people elect for the policy to pay out if either of the policyholders were to die or be diagnosed with a terminal illness. There is another, less popular option which only pays out if both policyholders were to die during the policy's term.
Two other points it would be beneficial to be aware of relate to "level" or "decreasing" cover. If you have level cover the sum paid out in the event of a claim remains constant during the policy's term. With decreasing cover the sum of the payout steadily reduces during the policy's term. You would use decreasing life cover to insure a repayment mortgage, where the sum outstanding to the mortgage lender decreases as part of your monthly mortgage repayments.
A Life Insurance policy does not have any investment value - when the policy comes to an end, that's it. The policy is over and has no residual value.
You should be aware that there are a number of other variations on life insurance and many optional extras are available to you.
Worried about your debt! And don't want to land up in bankruptcy as you know the bad effects of it! In this situation you should settle you debts as soon as possible with a good debt settlement company. This program is really helpful. In this way your financial position will be stable and you can live a debt free life.
This web site is owned and managed by Alliance Internet Ltd.
Alliance Internet Ltd is an Appointed Representative of Financial Connexions Ltd.
Financial Connexions Ltd is authorised and regulated by the Financial Services Authority for insurance mediation.
|
