Types of Life Insurance Products

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Kids with Parents at Sunsiet

Life insurance is a financial product that helps secure some financial security for your family and loved ones should you pass. If you’re depended on for your income, or you’d just like to leave your loved ones in a better financial position, then it’s worth taking out life insurance. But what types of life insurance are out there, and which one should you pick?

Picking A Type Of Life Insurance

Regardless of which one you pick, it’s all determined on certain factors which will determine what you’ll pay in premiums every month.  This could be in relation to your age, health, lifestyle, and any existing medical conditions that you might have. It’s important to know what type of life insurance is going to suit you best for your needs and requirements.

What Are The Different Types Of Life Insurance?

It’s good to know the different types of life insurance on offer so that when you come to make a decision, you know you’ve picked correctly.

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Term Assurance 

This is the basic type of life insurance on offer, and it’s where you choose the amount you want to be insured for and the period. If you die within this term, then the policy will be paid out to your loved ones. If not, then anything you’ve paid won’t be returned, and there will be no payouts.

When it comes to term assurance, there are there’s three main types. These are level-term, decreasing-term and increasing-term. You might want a combination of these in order to suit your requirements. Level term pays out a sum if you die within the specified term. Decreasing term means the amount you’re covered for will decrease over time and are good for covering a debt. Increasing term is an amount you’re covered for will increase over time.

Family Income Benefit Policies 

This type of insurance is a type of decreasing term policy. There is a payout in the form of a regular monthly income until the policy’s expiry date, if you were to die. This can be very helpful in ensuring that your family has something coming in every month and can be a more typical way of receiving money.

Whole-of-life Policies

This is an ongoing policy that pays out when you die whenever that may be. These policies are going to be more expensive because everyone dies at some point, and therefore, there’s a guarantee that the policy will have to pay out. It’s worth knowing more about this and what you might be able to gain from this.

Buying Life Insurance

When it comes to signing up for life insurance, it’s important that you do plenty of research in order to find the best one for you. There’s going to be plenty of offers out there, but it’s important you find the right one that not only is affordable enough for you to pay but gives you everything you need should you die. A life insurance comparison is important to do to see all of the options out there.

Life insurance is important, so ensure you find the right one for your needs.