| Taking out life insurance is a way of | | | | |
| ensuring that should you die unexpectedly, | | | | The other main type of insurance is |
| your dependents will be looked after | | | | whole-of-life and, as its name suggests will |
| financially. Before buying a policy you need | | | | be in place for your entire life and |
| to work out exactly how much your family | | | | guarantees a payout on your death. Because, |
| would need if the worst happened, and this | | | | with this policy a payout is guaranteed, |
| would be your 'sum assured'. That sum, | | | | premiums will be much higher than for life |
| together with your sex, age and your general | | | | assurance. There are different types of |
| state of health would be used to fix the | | | | whole-of-life policy; some are |
| amount of your 'premium' - how much you would | | | | investment-linked and others offer a set sum |
| pay each month to be insured. | | | | from the outset. Investment-linked policies |
| | | | tend to be popular and payouts will depend |
| There are two basic types of UK life | | | | upon performance of the investment. But, with |
| insurance and the amount you pay would also | | | | this type of insurance your policies tend to |
| vary depending upon the type you choose; term | | | | be reviewed every ten years, and premiums can |
| insurance or whole-of-life insurance. The | | | | go up or the company could choose to decrease |
| cheapest and simplest form of life cover is | | | | the cover it offers. |
| term assurance. This is most often taken out | | | | |
| at the time of your biggest financial | | | | If you are considering taking out life |
| commitment, for instance when you buy a | | | | insurance it is best to get independent |
| house, and is for a fixed period of time. The | | | | financial advice first. Your advisor will |
| purpose of the assurance is to ensure that | | | | guide you, helping you to accurately compare |
| should you die your mortgage is paid off | | | | life insurance policies, ensuring that you |
| leaving those left behind with no worries | | | | end up with the best one for you. Their |
| about housing. Once the policy expires it has | | | | knowledge of the UK life insurance market |
| no value, and you don't get any of your | | | | will be invaluable in your search for the |
| payments returned. There are different types | | | | right product, and the advisor will be able |
| of term assurance, most commonly level term | | | | to fully explain everything that has been |
| or decreasing term, but there are others that | | | | covered in only the briefest terms here. |
| may be more suitable to your needs. | | | | |