When exploring life insurance options, you may discover there are many different types. Each have their own unique features and can be suitable to different circumstances.
The main options that could be most suitable for those with OCD are:
Level term life insurance – A type of policy that covers you for a specific amount of time (known as the term) which is typically up to 40 years. If you pass away during the term, your loved ones will receive a fixed lump sum. Both premiums and your pay out amount (sum assured) will remain the same throughout. This form of cover is most suitable for those with an interest only mortgage.
Decreasing term life insurance – similarly to level term, this policy also covers you for up to 40 years (depending on your set term). This is a form of cover that reduces over time, often aligning with a repayment mortgage. It’s ideal for protecting a mortgage as it decreases in line with your mortgage as you pay it off. A popular option due to its typically cheaper premiums.
Over 50s life insurance – A policy different to the others, that is suitable for UK residents aged 50 - 85 with guaranteed acceptance and no medical questions asked, meaning your OCD (or other medical conditions) will not affect your policy. Policies often come with a waiting period that typically ranges from 12 to 24 months (meaning if you pass away due to natural causes in this time, you won’t receive a pay out).
Whole of life insurance – A form of cover that provides lifelong protection and will pay out a lump sum to loved ones, when not if, you pass away. Typically, a more expensive option, however it provides the peace of mind that comes with knowing your loved ones will be financially supported when you are no longer there.
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