UK life insurance
What is UK life insurance?
UK life insurance is an insurance policy which provides customers with a lump sum payment for their family if they die. UK life insurance is one of the most important forms of life insurance anyone will take out, as it provides the customer with peace of mind that their financial responsibilities will be looked after should the worst happen.
UK life insurance comes in many different forms, and customers can take advantage of UK life insurance over a certain term, or UK life insurance for the whole life of a customer.
Term UK life insurance
Term UK live insurance provides customers with a life insurance policy for a certain term, often the length of their mortgage. Whilst the term is often the length of a mortgage, it can be any length of time, although is rarely offered beyond a customer’s 60th birthday. This means that the majority of customers outlive their term UK life insurance policy, and never make a claim.
With the majority of customers outliving their policy, term UK life insurance is far cheaper than whole UK life insurance, which provides customers with UK life insurance for their entire lives.
Whole UK life insurance
Whole UK life insurance provides customers with life insurance for their entire lives, and is the more expensive of the two different types of insurance. Whole UK life insurance providers must charge their customers at least the value of their pay out, in premium payments throughout the length of the payment term, or to make any sort of profit at all.
Why should I take out a UK life insurance policy?
There are many reasons why people take out UK life insurance, with customers often choosing the policy to look after their financial responsibilities when they are gone. These could be children, or it could just be that they want to make sure their mortgage get’s paid off if they were to die, guaranteeing their family somewhere to live.
When you take out a UK life insurance policy, you can choose the level of cover that you want, with customers choosing to take out a higher level of cover paying more in premium payments each month.
Customers will also pay more for their premiums if they are older, smoke or have unhealthy lifestyle habits and are statistically more likely to die.