What is life insurance?
Life insurance is straightforward. You pay a monthly fee, and if you die, a lump sum of money is left to the people you leave behind — meaning money is one less worry for them during a difficult time.
Whether you want to protect your family, cover your mortgage, or simply make sure your loved ones are looked after financially, life insurance gives you that peace of mind.
Types of life insurance
Level term — pays out to your dependants if you die within a fixed term chosen by you (e.g. 25 years). The premiums stay the same, and so does the payout — whether you die on the first day or the last day of the policy.
Whole of life — pays out regardless of when you die, whether the day after you take out the policy or decades later. A specific type of whole of life cover is the Over-50s policy, mainly designed for those looking to cover the cost of a funeral.
Decreasing term — usually aimed at covering the remaining debt on a repayment mortgage if you die within a set number of years. The payout decreases over the policy term, typically in line with your remaining mortgage balance.
Couples also need to decide between joint cover or two single policies. Joint cover is cheaper but only pays out once when the first partner dies. Two single policies provide a greater level of protection for other dependants.
