- Wed 11 Oct 2023
Thinking of taking out a LIFE INSURANCE policy but not sure which one would be most suited to your personal circumstances? Below is a brief breakdown of the most common life insurance policies available to you:
➢ Decreasing Term Assurance - Also known as mortgage protection, this is the cheapest form of life cover available and pays out a tax-free lump sum in the event of death. This type of policy is predominately taken out alongside a repayment mortgage or other repayment loan.
➢ Level Term Assurance - Just like Decreasing Term Assurance, this policy also pays out a tax-free lump sum in the event of death. It provides a constant level of cover for a fixed premium throughout the whole term of the plan. This type of policy is best suited to interest-only mortgages where the outstanding capital will always remain the same.
➢Family Income Benefit - When a claim is made, this policy will pay out tax-free regular instalments, either monthly, quarterly, or annually until the end of the policy term in the event of death. Whereas a life insurance policy that pays out a lump sum can be used to clear a mortgage, this benefit can be used to help continue your lifestyle as well as contribute to bills such as water, electric, gas as well as nursery bills, school fees etc.
➢ Whole of Life - This policy will pay out a lump sum when the policy holder passes away – whenever that may be. Due to providers having to pay out on this type of life policy eventually, it is more expensive than the policies mentioned above.
Bradleys Financial Management Ltd and Bradleys Estate Agents Ltd are two different entities and the estate agents act as introducers for Bradleys Financial Management.