Life Insurance UK

Life Insurance UK: Security in Times of Crisis

Life is unpredictable and it can be beset with unforeseen circumstances that can strike at any moment. We often find ourselves at a loss in such situations and it would be of great comfort to know there is an available security blanket that we can turn to. Life insurance UK has become increasingly necessary what with the increase in cancer and heart-related problems in the region over the previous years. For many people, life insurance is seen as a practical means of protecting the family.

Protection versus Investment Insurance

There are two main life insurance categories: term life insurance, which is a protection type of insurance and permanent life insurance which also serves as an investment. In term life insurance, beneficiaries are paid out a death benefit upon the death of the insured. This is one of the most affordable and uncomplicated forms of insurance policies.

Should you opt to get a permanent life insurance plan, your beneficiaries will get a death benefit as well as a cash payout upon your demise. That’s why this is classified as an investment because you have the option of accumulating cash value on your policy.

Critical Illness versus Terminal Illness Insurance

Two other important types of life insurance UK are the critical illness and terminal illness insurance. Under a critical illness insurance policy, you are paid out a lump sum upon being diagnosed with a serious illness such as cancer, heart disease, brain tumor, stroke and many others. Terminal illness insurance, on the other hand, pays out a lump sum if you are diagnosed and expected to die in less than 12 months.

A lot of people are often confused about the two and whilst they are separate policies that entail different terms and conditions, most insurance companies offer insurance plans that combine the two, usually at no extra cost.

Other Types

There are also other types of life insurance UK that are available, each catering to a specific set of needs. Mortgage life insurance ensures that your home mortgage payments are settled should you die. The insurance company can send the money to your family or directly to your lender.

There is also the family income benefit insurance which provides your family with a monthly stipend if you become terminally ill or die. An income protection cover can be used as back-up income should you be unable to work because of an illness or accident.

To make sure you get the right insurance policy, discuss your needs and concerns with an IFA. GP