There’s no specific life insurance product for motorcycle riders.
Instead, you’ll choose the life insurance option that will best protect your loved ones if anything were to happen to you.
Taking out life insurance will protect your loved ones from a range of circumstances, not just death by a motorcycle accident.
So no matter what life throws at you, you can rest assured that you’ve taken the steps to financially protect your loved ones.
Typically, there are 4 main types of life insurance available, these include:
- Level term life insurance
- Decreasing term life insurance
- Whole of life insurance
- Over 50s plan
Which is the best option for you will largely depend on what you want to cover and your budget.
Let’s look into the different types of life insurance…
Level term life insurance
Level term life insurance provides a fixed sum assured (pay out amount). This means the amount paid out won’t change during the term of your policy.
You’ll be covered for a specified period of time (up to 40 years) and a pay out will be made if you pass away within this time.
Due to the large sum assured you can experience with level term life insurance, a pay out can be used to pay off an interest-only mortgage (or other large debts), cover family living costs, pay for your funeral or it can be left as an inheritance.
Decreasing term life insurance
With decreasing term life insurance, your sum assured will reduce over time and for this reason it’s usually the cheapest form of cover.
You’ll be covered for an agreed period of time (up to 40 years) and if you pass away during the term, your loved ones will receive a pay out.
Decreasing term life insurance is the perfect option for covering a repayment mortgage, as you can have your sum assured reduce in line with your remaining mortgage balance.
Whole of life insurance
With whole of life insurance you’ll be provided with lifetime cover, for this reason it’s a form of life assurance.
Your loved ones will be guaranteed a pay out when you pass away, not if you pass away - making it a great option for providing an inheritance.
You’ll be required to pay premiums for the rest of your life in order to keep your cover in place.
This can make it a costly option if you’re taking a policy out at a young age.
Over 50s plan
With an over 50s plan, UK residents aged 50 – 85 are guaranteed acceptance and you’ll be covered for the rest of your life once your policy is in place.
Unlike the other policy types, no medical information is required during the application process.
Instead, your premium will be calculated using your age and sum assured.
It’s important to be aware that most over 50s plans come with a ‘waiting period’. 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 (although a pay out will be made if the death was accidental).
A pay out from an over 50s plan can provide the funds to cover funeral expenses.