Life insurance is an insurance product that will pay a cash payout if the person insured were to be unable to live. It can be purchased on a life assured single or jointly life assured basis. The policy owner is required to pay regular monthly premiums to the insurance company. You can also visit https://www.jonpurnell.co.uk/for-you to get more information about life insurance advice.
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There are varieties of life insurance with different purposes for its use.
Level term insurance
Reducing term insurance
Whole of life
Level term insurance
Level term insurance is taken out for a fixed amount of cover, say £100,000. This amount remains constant at £100,000 throughout the term of the policy. Therefore if the life assured were to suffer the loss of life the payout would be the full amount of £100,000.
Reducing term insurance
The term insurance that is reduced is taken out using an initial amount of coverage, for example, £200,000. The coverage amount decreases to £0 during the full-time period of the contract. This kind of insurance is great insurance for capital as well as an interest-repaying mortgage.
Whole of life
As opposed to term insurance, this type of life insurance isn't limited to a specific duration of time during which the insured amount to be subject to the loss of life. It is also assured to payout upon the death of the life insured and the policyholder must continue to pay monthly premiums consequently the longer the life insured lives, the higher premiums are paid.