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Different Types of Life Insurance


Your family or business depends on you. If something were to happen to you, such as a premature death or a critical illness, your family or business is going to be in a rough situation. This is why it's important to get adequate life insurance in order to make sure they're well taken care of if the worst should happen.

Good life insurance or critical illness cover will give your family or business the protection it needs to manage through your death or incapacitation. In addition to that, the peace of mind it will allow you to make better life decisions down the road, knowing that they'll be looked after in the event of a catastrophe.

Not every family or business is going to have the same needs, and there is a lot to consider when choosing a plan that'll fit your requirements best. Let's take a closer look at the types of cover available to get an idea of how to proceed.

Life Insurance as Protection - Term Insurance

  • Specifically, term insurance (which is also known as "temporary insurance") will grant financial security to who you specify if you die during a "term." These terms are of a specific length and are usually around 10 to 20 years but are also commonly made for much shorter periods such as a year or even just a month. This is one of the most affordable forms of financial protection and will generally cover your dependents, employees, or colleagues for several thousand pounds at the personal cost of just a couple of pounds per month.



  • There are four main types of term insurance

  • Decreasing Term - The opposite of increasing term, this type will actually decrease by a certain percentage each year until finally reaching 0. It's generally used to cover loans, such as mortgages, and will be there to pay any leftover debt after your death. After the term is over, though, nothing is paid.


  • Increasing Term - Money has always been subjected to inflation, and this term will automatically increase the total amount insured by a fixed percentage rate in order to have the amount insured protected against the devaluation of currency.


  • Family Income Benefit - : Dying while the term has not yet expired will cause the income to be paid out to your dependents in intervals. Oftentimes, these payouts come on an annual, quarterly, or monthly basis and some policies will even increase the payout amount at a fixed rate (for example, three to five percent) on a yearly basis.


  • Level Term insurance -The amount is set at a fixed rate during the entire duration of the term. This is a common type of insurance for interest only mortgages or used for family protection.



  • Optional Extras

  • In addition to the major types, each of them often has a variety of features that can be added on, based on the person's individual needs. Most will have options to add the following:

    Waiver of premium - Premium waivers: This allows the insurance itself to pay for the premiums if you're unable to due to a sickness or an injury.

    Disability Benefit - Benefits for Disabilities: The is a benefit that'll pay out if you ever become disabled but there isn't any additional coverage after death on its own.

    Critical Illness Cover - Coverage for Major Illnesses: This has benefits that'll payout after a diagnosis of having a critical illness, which will be listed specifically beforehand.

    Increase Option - An Option to Increase: Like a mini version of increasing term, adding an option to increase on a standard term insurance policy allows the overall sum to increase each year at a fixed rate to keep up with inflation.



  • Taxation

  • As long as it's a policy that's qualified, the payout itself is not subject to income taxation. In order for it to be qualified, it'll have to meet some conditions. These include meeting a certain minimum amount that is payable on at least a yearly basis or shorter for at least a decade or until your death. Surrendering the policy beforehand may cause the sum to be taxed.



  • Protecting Your Family

  • Not everybody thinks to buy life insurance when they're young, as they may think their death is far off and they may have a more moderate income than an older person who has more experience in the workforce. Luckily, term insurance is an affordable way and a very popular family income policy for people with limited incomes.



  • Critical Illness Cover

  • Critical Illness Cover The critical illness cover we mentioned before can actually be joined with decreasing or even term insurance where it pays out for death and illness. Common qualified illnesses include blindness, cancer, stroke, heart attack, multiple sclerosis, as well as disability.



  • House Purchase

  • Life insurance allows any remaining mortgage payments to be paid out in the event of your death. Specifically, decreasing term will guarantee that the outstanding total will be paid off in the event of your untimely death.

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    Why eInsured Life Insurance

    Is your Life Insurance cover costing you too much?

    Life insurance cover is something which has actually dropped in cost over recent years. Anyone who has arranged Life Insurance cover more than a few years ago could be surprised at how much it may be possible to save.

    Critical illness Insurance

    Critical illness is another cover which has also changed shape quite considerably, with many companies now only offering review able critical illness quotes.

    Mortgage Payment protection

    Mortgage Payment protection and Private Medical insurance are also two other areas of cover where we may be able to offer advice and assistance.

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