Life Insurance
What is life insurance?
Life insurance is an insurance policy that makes a one-off payment or an income after the death of the person insured and named in the policy.
I already have life insurance
Life insurance cover is currently at an historic low. If you are healthy, and took out insurance over 5 years ago, you could find the amount of cover cheaper now than it was then in many cases - even though you're older and therefore in theory a greater risk to the underwriters. This is because life insurance premiums have reduced from the sudden and dramatic increase they made when AIDS and HIV first became known about.
Is all life insurance the same?
There are actually two types of life insurance - term insurance and whole life. Term insurance is the simplest and cheapest form.
How it works
You decide how much money you wish the insured person to be insured for, which is the amount their family or beneficiary would get in the event of their death.
In the event of death of the insured person within a certain period (or "term" hence the name term insurance), the insurance pays out a tax-free lump sum. Fixed monthly or annual insurance premiums are paid each month or year for the duration of the term until the policy ends.
A series of variables determines how much the premium will be. These include factors such as your age, gender, state of health, habits such as smoking or drinking, previous ill health, or the term of life insurance you require.
The premiums are fixed for the term.
The cover lasts until the term end so long as you pay the monthly or annual premiums. If you stop paying the premiums, the policy terminates.
If the end of the term comes and no claim has been made, you forfeit all the premiums you've paid.
Sadly, almost nobody has as much life insurance as they think they have. Contact Explore Finance for a quote - we will beat any life insurance quote you have, and are open 7 days a week. Apply online to see how we can help.
