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Before purchasing Life Insurance cover, make sure you have a full understanding of exactly how your Insurance policy works. Many people fail to take the time to understand their Life Insurance cover and as a result, spend years paying their Insurance premiums only for their family to find that they cannot claim on the policy.

Life insurance - Do I need it?

In simple terms - YES! In the event of your unexpected death, the right life insurance policy will make sure that your partner, loved ones or dependants who rely on your salary, are safe and catered for even after you.

Should I buy life insurance?

The reason for buying life insurance is quite simple. Your family will receive a lump sum payment (which could also be a series of smaller payments or even a monthly income) in the event of your unexpected death, which can reduce the likelihood that an already highly-traumatic situation will not be exacerbated by financial worries.

The money can be used for a variety of useful and necessary things, such as paying off your mortgage, meeting bills and day-to-day living costs, funding your children’s education and, while it sounds morbid, even to cover the cost of your own funeral.

But, before you start shopping around for the best life insurance deal, it’s important to get to grips with the different types of life insurance cover available.

Whether or not to buy life insurance and the kind of life insurance you need is one of life’s big decisions. The different kinds of policies can seem like a minefield to the uninitiated which is why seeking professional life insurance advice before making your move is a very good idea.

The good news is, sourcing advice about life insurance doesn’t need to be difficult. You can start by completing our Contact Us form and one of our independent financial advisors will contact at a time that’s convenient for you. Our independent advisers will be happy to provide you with free, impartial advice with no obligation to buy. You can even request a call back at a time that’s convenient for you.

You may however, choose to carry out your some of your own research before seeking advice on life insurance. Here is the place to start.

To help you we have put together a brief guide to Life cover

Different types of policy

So what policies are available?

Life insurance that offers protection-only is known as ‘term insurance’. This is the most straightforward variety although there are still several different kinds to get your head around.

Term Life Insurance

This type of Insurance cover will pay out a one off lump sum in the event of the policy holder’s death. The amount paid out will depend on how much cover the policy holder took out and whether this cover remained level or decreased over time

Term Life Insurance cover runs for a specified amount of time known as the policy’s term.

If the policy holder does not die within the term of their policy no pay out will be made.

This type of Insurance cover can be level or decreasing.

Level Term Life Insurance

Level Term Life Insurance cover will pay out the same amount at any point in the policy’s life. This is usually used for people who have interest only Mortgages, but can be used for any style of Mortgage.

Decreasing Term Life

Decreasing Term Life Insurance cover will pay out less as the policy gets older. This type of cover is designed to be used with repayment Mortgages.

However, you do not have to have a Mortgage in order to take out Life cover. Many people take out life cover just to provide some inheritance for their loved ones after their death

Terminal Illness Cover

The majority of Term Life Insurance policies will offer Terminal Illness cover at no extra charge, but this will only pay out if the policy holder is diagnosed with an illness that they will die from. Beware, this is not the same as Critical Illness cover.

Critical Illness Cover

Most Term Life Insurance policies can be combined with Critical Illness cover so that the policy will pay out in the first event. In other words, the policy will pay out if the policy holder contracts one of the named illnesses or dies. Be aware that the policy will still only pay out once.

Now you know the basics you are in a much better position to find the right policy for you, but if you want some Insurance advice and you want to find an outstanding deal for your Life cover, speak to one of our Independent Financial Advisers.

We know there must be a lot of things going in your mind before you can make a final decision, we suggest below questions that you should ask to an Independent Financial Advisor: 

  • What is term assurance?
  • How do I choose the right type of life insurance cover
  • Do my wife and I need separate life insurance policies?
  • Are there other types of life insurance cover?
  • Do I have to pay tax on a life insurance policy payout?
  • Can I buy any add-ons?
  • What is pension term assurance?


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