It is convenient to think of a life insurance policy as a single product with no additional extras, nevertheless as insurance companies work harder to deliver a full-coverage package, the availability of options keeps expanding.
Different types of life insurance and its benefits
Well, there are four basic life insurance packages and all of them seek to do a similar thing-to provide your family with financial security, should you pass away. Depending on your financial circumstances and position in life, there is usually the best policy for you.
If you are looking for a protection for your loved ones after you ‘Whole life or Term life Insurance’, the simplest form of life insurance(but often the most expensive one) provides a lump sum to your beneficiaries at the event of your death. The only difference is Whole life will payout no matter when you die whereas term life expires after a certain period.
If you are trying to protect your mortgage, ’Decreasing term policy’, can be considered, as it is specifically designed to cover your mortgage repayments, as the sum covered reduces in line with the decrease in your mortgage repayments.
If you want to get prepared for any uncertain diseases,’Critical Illness Cover(CIC): this policy provides you with an additional level of insurance, by paying out a lump sum, should you become critically ill and no longer be able to support you and your family. Please note that this policy can either be taken separately at an additional cost or can be added to your basic life insurance.
If you want a cover for your income, ‘Income Protection’ could be considerate: Unlike critical illness, income protection seeks to replace the regular payment of your salary rather than pay out a lump sum and can be used in conjunction, any sick pay provided by your company or government sick pay scheme.
Remember- it is fine to have more than one policy to cover multiple types of expenses and it is not unusual to have two or more different life covers in place during your lifetime for this reason.
So, it depends on the individual circumstances, which policy is best for you. Nevertheless, it is advised to read all the policy-related documents carefully.
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!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00