What is Life Insurance?
Life Insurance is also known as Term Insurance.
Life Insurance pays a tax-free lump sum if you die whilst the policy is in force.
Life Insurance is an extremely useful and affordable form of insurance, which you can apply for at any time as long as you are under the age of 68. (Most insurers will not insure you over the age of 70.) It provides a level of security for your family if the worst was to happen.
If the Life Insurance is not related to a mortgage, you decide how much you want to insure for and the term- and the premium will be calculated accordingly.
If you are insuring to protect an Interest Only Mortgage the amount of insurance cover you’ll need will equal the value of your mortgage. You’ll also need the term of the insurance to match the length of the mortgage.
If you are insuring to protect a Repayment Mortgage you should take out Mortgage Life Insurance.
Most Life Insurance policies include Terminal Illness cover at no extra cost. This means that if you are diagnosed with an illness from which your Doctor expects you to die within a year, the insured sum will be paid out immediately.
Frequently Asked Questions related to the above topic.
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