Life Insurance
Life Insurance for providing some financial security for people who depend on you financially. There are different types depending on your situation.
Protection of the family and dependents
Life insurance is about providing some financial security for people who depend on you if you die if you do not have a partner, spouse or civil partner, children or other dependents, you do not need life insurance.
To be sure of buying the right amount of coverage, with the right conditions, you should get advice. For more information, see Getting financial advice. Counselor assesses that your family will need, and businesses around the cover that suits you best.
Always answer questions as best as possible and to disclose any existing medical conditions when asked. If you do not give the full facts, it could invalidate the policy and the insurance company does not pay.
There are two basic types of life insurance: term insurance and life insurance in the country.
Term insurance (also called the period of insurance) is paid if you die within a certain time, and the full benefit of life insurance when you die. Some whole life policies also contain an investment element to them, but such investment-type policies cost much more than insurance protection.
If you want investment, consider the full range of products (not just life insurance) which may meet your needs and circumstances - see investments of this site.
Term insurance
This is the easiest and least expensive type of life insurance, and is known as term insurance because you choose how long you cover, say, 10, 15 or 20 years (duration).
Term insurance only pays if you die during the term you have agreed. If you live longer than the period you will get nothing. As a couple, you can also purchase a term that covers both your names, with the political advantages, if any of you die during the term.
Things to watch
* What are the policies that you want? For example,
O benefit of family income (policy, which pays an income rather than a lump sum)
Raising the policy (which includes the increase in contributions during the year)
On reduction policies (including lower premiums over the years)
On renewable policies (which can prolong the initial period).
* Verify that the exception - in other words, when the policy will not be paid. For example, most do not cover death from alcoholism or drug addiction. You could not be covered, taking part in risky sports. If your health is seriously compromised if the policy starts, some causes of death may be excluded or you may be denied coverage entirely.
* Premiums shown are usually fixed for the entire period. There are also contracts where premiums reviewed after a certain period, usually five years.
* How flexible is the contract? Can you reduce or increase cover easily as your circumstances change? Are there additional costs to do? Do not apply to terminate immediately if you miss a payment, or is there a grace period?
* For an additional payment, you can usually a waiver of premium. He pays a premium if you can not work due to prolonged illness, so that your shell has not been interrupted.
* If you want to change insurer, check the level of premiums for a new contract before switching (premiums rose in May due to age or adult, because you have created a medical condition). Also check to a new level of coverage compared to the previous one. Different benefits may be available in May and various exceptions apply - for example, can not be covered for medical conditions that are designed to move, even if they fall under the previous contract. If you decide to change, make sure you do not cancel your original cover until you are fully covered by new contracts.
* Policies may be established under trust. This means that in case of death, the proceeds of the policy are paid directly to the beneficiaries of your choice. Subject to the trust set up properly, can have advantages in that. However, the use of the trust may not be suitable for everyone and because of the difficulties we recommend you seek financial and legal advice. For more information, see Getting financial advice.
How much does it cost?
That depends on several factors, such as the amount of coverage you want, and the remaining term. Of course, it is also based on the risk of the insurer would pay: If you are a smoker and hazardous work, you'll pay more for a non-clerical smoking. Life insurance also costs more than men because on average they do not live that long. Always compare covering politics, not just the price. Someone may be cheaper than others, but they can not offer the same level of protection.
Term pension (ATP)
PTA is a type of term, which uses the rules for board to provide life insurance. You do not have to pay contributions to your retirement income, and instead they can be enrolled for life insurance coverage.
This type of insurance may run impact on how any other pension or you have to win. Keep in mind the PTA provides the durability of the coating - it is paid on death, and he does not give you a retirement income. For more information - see the warranty period of retirement.
The whole life insurance
In whole life insurance pays a certain amount when you die, when there is.
How much does it cost?
This policy will cost more, partly because they will pay when an event (death) happens, but also under various charges that come with them. The cost also depends on your lifestyle: If you are a smoker and hazardous work, you'll pay more for a non-clerical smoking. Life insurance also costs more than men because on average they do not live as long as women. Always compare covering politics, not just the price. Someone may be cheaper than others, but they can not offer the same level of protection.
