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Life Assurance | Life Insurance
Life Insurance is an Insurance Policy for which you pay monthly premiums and in the unfortunate event of your death a pre-determined sum of money is paid out to your nominated beneficiaries. If you have family who are financially dependent or you have outstanding liabilities then you have a need for Life Cover.
Life Insurance is often referred to as Life Assurance, Mortgage Life Insurance, Term Insurance or Term Assurance. Whilst it comes under many names, the essence of the policy is the same: You pay a monthly premium and in the unfortunate event of your death, a tax free sum of money is paid to your family or nominated beneficiaries. If the life assured survives, no payment is made and the policy expires.
Here are the four main types of Life Insurance:
- Increasing Life Insurance or Index Linked Life Insurance: This is a life insurance policy where the value increases over time, the reason most people choose this type of cover is to cover increases in their income and/or offset the effects of inflation.
- Level Term Life Insurance: The value of level term life insurance policies do not change during the term of the policies, i.e. the sum assured stays the same. Level Term Life Insurance Policies are frequently used to provide protection for a family and to cover interest only mortgages.
- Mortgage Life Insurance / Decreasing Life Insurance: The sum assured (policy value) decreases throughout the duration of the policy. Decreasing Life Insurance is often used to cover reducing debt such as capital and interest repayment mortgage or loan. For this reason the policies are often referred to as Mortgage Life Insurance and Mortgage Life Cover.
- Whole Life Insurance / Whole Life Assurance: As the name suggests, a whole life insurance policy provides cover for the full life or the insured and there is no end date for a policy. Whole Life Insurance Policies are always provided on a level term basis so cover amounts don't reduce. Payments for whole life policies are understandably higher than term policies because the policies guarantee to pay out.
There are other types of Life Insurance such as Family Income Benefit Insurance also called Family Income Benefit Assurance which provides a tax-free annual income, instead of lump sum until the end of the specified term.
Top Quote UK is one of the Internet's leading brokers in protection products such as Life Insurance. Every day hundreds of people search online for Cheap Life Insurance and Affordable Life Insurance here at Top Quote UK as protection specialists. You can get an Instant Life Insurance Quotation Online or speak to one of our qualified financial advisor's by calling us free on 0808 1782 777.
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