Which type of life insurance policy will be the best for you will depend on your individual needs and circumstances.
Typically, there are 4 main types of life insurance:
- Term life insurance (level or decreasing)
- Whole of life insurance
- Over 50s plan
- Family income benefit (FIB)
Each of these policy types will be well suited to protecting different aspects of your life.
Term life insurance for women
With term life insurance, your policy will last for a specified period of time (the term) and a pay out will only be made if you pass away during this time.
Most commonly, you’ll be able to take out cover with level or decreasing terms.
Level term life insurance provides a fixed sum assured (pay out amount). Whereas with decreasing term life insurance, your sum assured will reduce over time.
Level term life insurance is ideal if you’re looking for a large pay out for your loved ones, this could be to:
- Pay off an interest-only mortgage
- Cover day to day living costs
- Leave an inheritance
Decreasing term life insurance is well suited to paying off a repayment mortgage, as you can have your sum assured reduce in line with your remaining mortgage balance.
Alternatively, you may take out decreasing term life insurance and have your sum assured reduce as your children get older.
As your children reach adulthood, their need for financial aid may lessen.
Whole of life insurance for women
Whole of life insurance is a form of life assurance, as it provides lifelong cover.
Your loved ones will be guaranteed a pay out when you pass away.
To keep your cover in place, you’ll be required to pay premiums for the rest of your life.
This can make it a costly option if you take a policy out at a young age.
This is why whole of life insurance is well suited to those later on in life who’re still in good health.
A pay out from whole of life insurance can be used to cover the cost of your funeral, contribute to family living expenses or can be left as an inheritance for your loved ones to enjoy.
Life insurance for women over 50
An over 50s plan may be well suited to women over 50 who are looking to secure life cover.
With an over 50s plan, those aged 50 - 85 are guaranteed acceptance.
There’s no need to provide any medical information, making it an ideal choice if you’ve previously struggled to obtain cover due to ill health.
Instead, your premium will be calculated using your age and level of cover.
It’s important to note that insurers will often add a waiting period to their over 50s plans.
This is usually the first 12 – 24 months of the policy, where if you pass away due to natural causes no pay out will be made to your loved ones.
However, any premiums paid into the policy will be refunded.
Family income benefit
Family income benefit is an alternative form of life insurance.
Instead of providing your family with a lump sum pay out upon your passing, they’ll receive monthly (tax-free) income payments.
You’ll be covered for a specified period of time and if you pass away during this time, monthly payments will commence.
Budgeting a large sum of money at an already overwhelming time can bring added stress, but with family income benefit your loved ones can easily budget their monthly payments.