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