Level term
Level term life insurance provides a fixed (or level) lump sum pay out.
This means that the amount paid out upon your passing won’t change throughout the length of your policy.
The amount your loved ones receive will be the amount agreed when you took your policy out.
You’ll be protected for an agreed period of time (the term) and if you pass away during this time, a pay out will be made.
If you don’t pass away, no pay out is made and your policy expires.
This type of cover is ideal for protecting large expenses such as paying off debt, an interest-free mortgage or leaving as an inheritance.
Get in touch for quotes on level term life insurance policies.
Decreasing term
With a decreasing term policy, your sum assured will reduce throughout the term of your policy.
As with any term policy, you’ll be covered for a specific period of time and your loved ones will only receive a pay out if you pass away during the term.
If you don’t pass away, no pay out is made and your policy expires.
Decreasing term life insurance is well suited to covering a repayment mortgage as you can have your sum assured decrease in line with your outstanding balance.
At Reassured we can compare multiple decreasing term policies to find the most cost-effective option.
Whole of life
Whole of life insurance is a form of life assurance, as you’re provided with life-time cover.
This means that your loved ones are guaranteed a pay out.
Whole of life tends to be well suited to those who’re later on in life and in good health.
Arranging a whole of life policy at a young age can lead to you paying more into your policy than it’ll pay out.
At Reassured, we can compare both term and whole of life insurance policies to ensure you secure a policy that suits your needs.
Over 50s plan
UK residents aged 50 - 85 are guaranteed acceptance to an over 50s plan, with no medical information required.
This option is well suited to those over 50 with less than favourable health.
Due to the unknown risk you pose to insurers, your sum assured will often be capped at around £20,000.
Most insurers also add a ‘waiting period’ to the policy, (usually 12 - 24 months).
This means if you pass away due to natural causes during this time period, no pay out will be made. However, the premiums you’ve paid will be refunded.
A pay out from an over 50s plan can be used to cover funeral costs or left as an inheritance for your loved ones to enjoy.
To compare over 50s plans, get in touch today.
Family income benefit
Family income benefit is an alternative type of life insurance.
Rather than receiving a lump sum pay out upon your passing, your loved ones will receive a monthly (tax-free) income.
This can help to cover:
- Daily living expenses
- Monthly rent payments
- Help with long-term budgeting
Having to budget a large sum of money can be extremely stressful, especially at an already difficult time.
Family income benefit will relieve your loved ones of this stress and ensure they can continue to live comfortably.
However, family income benefit cannot be used to pay off larger debts in one lump sum (such as a mortgage).
In some cases, depending on your budget, it can be beneficial to take out a life insurance policy (such as decreasing term) as well as family income benefit.