As discussed, there are a number of policies available to those who are self-employed, each better suited to protecting particular aspects of your life.
1. Term-based life insurance
Term-based life insurance provides cover for a specified period of time.
If you were to pass away during this period a cash pay out will be made to your loved ones.
There are two common types of term cover:
Level term life insurance provides a pay out which holds its value throughout the life of the policy.
As a result, this type of cover is ideal for covering fixed costs such as; an interest-only mortgage, funeral or an inheritance.
Decreasing term life insurance, in contrast, provides a lump sum pay out which reduces in value during the policy term.
Therefore, it's best suited to covering costs which reduce over time, for example, a repayment mortgage.
Because the risk to the insurer reduces over time, decreasing term cover is cheaper than level term.
At Reassured, we can help you compare both level and decreasing term life insurance quotes.
2. Family income benefit
Family income benefit is a term-based policy which provides your loved ones with ongoing, tax-free monthly payments.
It's ideal for replacing your lost income if you were no longer around to provide and eases the strain of ongoing monthly budgeting.
Upon your passing, your family will receive continued payments until the policy ends.
Due to the diminishing risk to the insurer with regards to family income benefit, premiums tend to be relatively cheap.
To obtain your free family income benefit quotes, contact us today.
3. Whole of life insurance
Whole of life insurance is similar to level term life insurance.
The pay out sum remains fixed but here cover lasts for the rest of your life.
This type of cover is best suited to those in later life who are in good health.
This is because medical information is taken into account when calculating premiums and it's possible to pay more into the policy than it'll pay out.
To arrange whole of life cover, contact Reassured for your free quotes.
4. Over 50s life insurance
Over 50 life insurance offers guaranteed acceptance to UK residents aged between 50-85 and requires no medical information.
The sum assured (cover amount) is significantly lower than other policies due to the unknown risk to the insurer.
As a result, over 50s life insurance is best suited to those in later life who suffer from less than favourable health, who want to cover funeral costs.
To arrange an over 50s policy or to determine if this is the right cover for you, contact Reassured.