Money Outlet

There are 2 main types of UK life insurance: whole of life insurance and term insurance. Below you’ll find brief explanations of both to help you decide which life insurance policy would suit you and your needs best. There are additional types of insurance, such as investment-type insurance however here we will discuss the two general types of policies.

Whole of Life Insurance:

• This insurance policy covers your whole life, unlike term insurance (see below)
• Whole of Life pays guarantees to pay out upon your death
• This type of life insurance is recommended if, for example, you plan to leave money for your family after your death.
• You may be able to combine this policy type with term insurance.
• As whole of life insurance covers your whole life, it is usually more expensive.

Term Insurance:

• You are covered for a specific period of time and only pays out if you die before the policy expires. This is dictated by the ‘term’ of the policy.
• Enables you to structure your policy to pay off debts, such as a mortgage, after you die.
• Allows you to leave a lump sum amount to family.
• You are able to add ‘critical illness cover’ which will pay out in the event a qualified critical illness is discovered before the term of the policy ends.
• Is the cheapest of life insurance cover.

As with most UK insurance policies, as well as the unique criteria of each insurer, it is recommended to compare policies and quotes to find the best one to suit your personal life insurance needs. Today there are 100s of insurers competing to offer you a cheap life insurance quote.