Life cover is a sum payable on death during the term of the policy in return for a premium which is paid either in regular installments or as an annual premium.
Choosing life Insurance is relatively easy, but other aspects such as should the policy be written in trust, which type of trust should be used, the potential of creating a future Inheritance tax liability and life of another means that Independent Financial Advice is important.
Invest Southwest Independent Financial Advisers will find the right life cover for you taking into account your medical circumstances and financial situation. We will ensure the policy is written in trust if this is suitable for your financial circumstances
Life insurance is one of the most straightforward types of protection insurance as, put simply, it pays out when you die. There are two main types of life insurance:
Term assurance: covers you for a fixed period and pays out if you die during this period.
Whole-of-life policies: these policies continue indefinitely and pay out when you die, regardless of when that happens.
There are many different reasons why you might take out life insurance. You might want to ensure your mortgage is paid off if you die, or your main concern might be to leave behind money for your family to live on. Some people take out whole-of-life policies to cover an expected inheritance tax bill when they die.
With term insurance you choose the amount you want to be insured for and the period for which you want cover. If you die within the term, the policy pays out to your beneficiaries. There are two main types of term assurance:
Level-term: The amount you're covered for remains level throughout the term. The monthly or annual premiums you pay usually stay the same, too. Level-term policies can be a good option for family protection, where you want to leave a lump sum that your family can invest to live on after you've gone.
Decreasing-term: The amount you're covered for decreases over the term of the policy. These policies are often used to cover a debt that reduces over time, such as a repayment mortgages. Premiums are usually significantly cheaper than for level-term cover.