Simple and cost effective Term Life Insurance
There are actually many types of life insurance cover. The life insurance policies many companies provide are called term assurance.
A term assurance policy normally provides a fixed amount of life insurance (referred to as the sum assured) for a fixed period (called the term) in return for the payment of a fixed monthly premium amount that is set at outset and will not change. At the beginning of this kind of plan you decide how much cover you need and over how many years you may need it.
If you die within the term of the plan the amount assured will be paid out tax free and the plan then normally ceases. If you survive to the end of this term, the plan ceases and there is no payout. Accordingly, this is the simplest and most cost effective form of life insurance which can be obtained in the UK.
Term assurance far and away the most popular form of UK life insurance - with over 1.5 million new policies arranged in 2007 (source: Swiss Re Term and Health Watch 2008).
A term assurance plan may be set up to cover just one individual (single life) or more than one individual (joint lives). There are a various different options that can be built into a term assurance plan.
The cost of term life insurance will vary according to your age, gender, your health and smoking status ie. either smoker or non-smoker.
To find out how little term assurance could cost you can often use a copmpany's online quotation engine to compare life insurance quotes from many leading UK life insurance companies on your screen in hardly any time at all. Of course life assurance costs also vary from one insurer to the next so it is important that you shop around.
If you stop paying the monthly premiums for your policy then the cover will not continue.
There are a various different types of life insurance, each designed to do a slightly different job. It is therefore important that you choose carefully which life insurance is the best one for you.