Types of life insurance
What type of life insurance contract should I purchase?
Most people have two main protection needs that can be covered with life insurance (often known as life insurance).
- Repay a large debt such as a mortgage loan
- Protection of the family leaving money for your family after you died.
Do you want to buy life insurance?
If advice is deemed necessary, please consult an independent life insurance broker.
Which? Financial services can provide the best life or mortgage insurance tailored to the needs of individuals by using fair and unbiased third party advice services.
Do you want to know more about life insurance referral service? Financial operations.
Term guarantee
The most basic type of life insurance is term insurance, and selects the insurable amount and the period covered. In case of death within the term of the term, the insurance money will be paid to the beneficiary. If you do not die during the period, insurance premiums will not be paid and the insurance fee paid will not be refunded.
Least term term term term term term term term and term term sometimes a combination of the two is the best answer for the long-term guarantee to consider.
Life insurance contract for level period
If the level period policy dies within the specified period, we will make a lump sum payment. The amount you are covering remains throughout the period - so the name. The monthly or annual premium you pay will generally remain the same.
The policy of the level period will be a good choice for family protection. You can leave a temporary amount to invest your living after your family spends your time. Also, if you need a cover of a certain amount for a certain period of time (eg covering interest-only mortgages that are not covered by a gift policy) it is a good choice.
Decreasing life insurance contract
For periodically shortened policies, the target period is reduced during the policy period. These policies are often used to cover obligations that decrease over time, such as repayment mortgages.
Insurance premiums are usually considerably cheaper than premiums in level periods, as the insurance amount decreases as the time goes on. Depreciation insurance can also be used for inheritance tax planning purposes.
Family benefit system
Family income benefits Life insurance is a kind of long-term policy. However, if you are deemed temporary, you pay periodic income to the beneficiary until the expiration date of the insurance claim.
One of the advantages of family income is that you can easily find out how much you need. For example, if you take home £ 2,000 per month, you can reimburse your family if you die.
But there are drawbacks. If you die for two years in a 20 year family benefits policy, your family can earn £ 2,000 a month for 18 years. However, if you die one year before the policy ends, your family will earn £ 2,000 per month in just a year.
All life insurance
As the name implies, the policy of whole life is a continuous policy, paying it whenever you die. These policies are more expensive than period guaranteed policies because they are guaranteed to die at a specific point in time (that is, policies must be paid out).
All lifetime insurance is a convenient way to cover invoices of future inheritance tax.
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