If you have particular requirements about the kind of life insurance you need, you can contact Legal & General and speak to a financial adviser.įind out more about the types of life insurane we offer: Ultimately, the best type of life insurance is the policy that matches you and your loved one’s needs, providing the right amount of cover at a price you can afford. We hope we've expalined life insurance in a simple as way as possible. Legal & General do not offer this type of cover. If your term life insurance can be converted into a whole-of-life arrangement, then you have a convertible life insurance policy. With this type of life insurance, you may have to pay higher premiums as you get older, and there will be a renewal limit. In addition, you may hear the term renewable term insurance, which means you can extend your term without having to undergo a new medical examination, or new underwriting. This type of life insurance is normally designed to protect against inflation and the rising costs of living. Premiums are normally reviewed annually or at set yearly intervals. This means you pay higher premiums over the length of your cover but your cover amount is reviewed against measures of inflation, or a fixed rate so it rises over time. Perhaps one of the lesser known types of life insurance policy is ‘increasing term life insurance’. If your children, partner or other relatives depend on you financially and your parental responsibilities, this type of policy could help financially protect your family if you passed away. What does a level term life insurance policy cover? The cash sum could be used to cover childcare costs, school fees or unpaid bills. Level term life insuranceįor many households, a ‘level’ policy is the best type of life insurance as the cash sum stays the same throughout your policy term, and your monthly premiums will remain the same unless you make a change to your policy. The upshot is that you can choose the exact amount of cover for your needs, and the premiums are lower, due to the fact the cash sum reduces over time. Decreasing term life insurance, sometimes known as mortgage life insurance, means your cash sum decreases roughly in with the way a repayment mortgage decreases, though the premiums stay the same unless changes are made to the policy.
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In this instance, you could choose a term duration that covers the length of your mortgage repayments, as once the mortgage has been paid off you may not have a need for life insurance to protect it. Here is more information about the main types of term life insurance: Decreasing life insuranceįor many people, the first time they think about life insurance is when they first take out a mortgage.
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As we will explore, there are different types of life insurance witin this category to meet different needs. This article mostly focuses on term life insurance.
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The cost of this type of life insurance will reflect that fact that the provider will expect to pay out on a valid claim. In contrast, whole of life cover provides lifetime coverage, which means your loved ones will receive a payout whenever you die. With this type of life insurance, you will only receive your payout if you pass away or have a qualifying terminal illness during the chosen term. As the applicant, you choose how much cover you need, and the duration of the policy length, which may cover the length of a mortgage, or other life milestones like your children’s school years.
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Later, we'll look at different types of life insurance within those definitions, but lets start with the big two: Term life insuranceĪs a rule of thumb, term life insurance provides financial cover against death for a set period. In broad brushstrokes, there are two main types of life insurance you need to know about: term life insurance and whole of life insurance. Life Insurance is a financial product that could mean your loved ones receive a sum of money if you were to pass away while covered by the policy.