Best Life Insurance UK
What is the best life insurance offered in the UK?
The best life insurance policies offered in the UK will vary largely dependent on the needs of the customer. There are several different types of life insurance on offer, some which will benefit the majority of those who take out life insurance, whilst there are other types of life insurance which will benefit the minority.
Term life insurance
The most popular form of life insurance offered in the UK is term life insurance, and this is partly because it is the cheapest. It is also because it provides customers with peace of mind when they need it the most, during the term of their mortgage, or the period their children are still at home and relying financially upon the customer.
Term life insurance provides customers with an insurance policy that will run for a certain term, usually the 25 years of their mortgage, and will pay out a lump sum to the family of a customer who dies during that period. Any customer who outlives the term of their policy, will see their policy expire, but will have lived safe in the knowledge that their family will have been protected while they were paying off their mortgage and helping to provide for their children until they were financially independent.
There are many different ways in which the payout for term life insurance works, with some policies paying out a flat rate, at whatever age the customer dies, while others will reduce the payout as the customer gets older, and has paid off more of their mortgage.
Customers can also take out term life insurance which pays out a fixed income to their family, for the remaining years of the policy, and replicates the income of the person who has died so the family can continue to pay household bills and their mortgage.
Whole life insurance
The other form of life insurance is whole life insurance, and this provides a customer with life insurance for their whole life. Whole life insurance is a lot more expensive than term life insurance, because it pays out to every customer at some point, but does offer a guaranteed return on investment. Those customers who can afford to pay the difference can guarantee that their family will receive a payout at some point, and may treat it as providing extra inheritance.