Choosing the right life insurance policy means having one which suits your requirements and needs. It entails deciding upon the right amount of coverage that you will need to protect your dependents. This will take into account their living expenses, and covering for any debts or mortgage.

There are several life insurance options to choose from, however, whatever you pick will be based on your life situation, and what you want to get out of that policy.

Increasing Term Life Insurance

The cover in this type of insurance keeps increasing with time. However, it is not just the cover but also premiums that will go up, as the policy is designed to beat the impact of inflation. This is an expensive proposition, but as the cover keeps on increasing it will protect your beneficiaries against the rising cost of living.

Decreasing Term Life Insurance

The coverage in this keeps decreasing over the life of the policy at a predetermined rate. The insured has to pay premiums throughout the term of the contract, while the coverage keeps reducing monthly or annually. These are generally linked to your mortgage. It is affordable for most and suitable for situations where there is a mortgage to repay. The only disadvantage is that it only covers mortgage balance.

Level Term Life Insurance

The cover will remain the same, no matter when the claim is made. However, as the cover does not mitigate inflation effects, the same amount may become worthless in a longer duration. It is simple and affordable for most and suitable for people with dependents and those with an interest-only mortgage.

The whole of Life Insurance

This type of policy covers you for the whole of your life, without any fixed period. The advantage of this policy is that it pays out to the dependents as long as you keep up with the premiums regularly. This is, however, more expensive than shorter-term policies. It provides money to cover funeral costs or an inheritance tax liability.

We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
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