Life assurance – policy types part 1
Getting life assurance isn’t as simple as asking for a ‘life assurance policy’ there are a number of different types of policy types and a range of different levels of cover from a plethora of providers – who quite confusingly give their policies different names. Hopefully the information below will help provide you with a better understanding of http and help you choose the right insurance policy for your circumstances.
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Life assurance – what is it?
Put quite simple life assurance is an insurance policy that covers you until death and not just a fixed period of time. The policy will always pay out, (baring exclusions that will be listed in the terms of your policy) – therefore, it is more expensive than term insurance which does not always pay out.
Life assurance – premiums
With life assurance the policy premiums are usually fixed for a period of time, (i.e. ten or fifteen years) after which they are reviewed and depending on the level of the fund, can be either increased of decreased.
Life assurance – policy types
‘With profits’ life insurance will pay out on death at any time. This policy allows for a reversionary bonus; i.e. the policy holder can ‘top up’ the final sum with annual bonuses. Also a ‘terminal bonus’ can be paid on death which can substantially increase the amount of the final payout. With life assurance policies of this type the ‘surrender value’ is unlikely to be high in the early years and for the first one or two years is likely to be nil. The insurance premiums on this type of policy are usually relatively high.
This type of life assurance policy is good as it provides the holder with the opportunity to increase the final payout should they have the funds to do so. However, it must be stressed again that this is my no means the cheapest form of life assurance.
Choosing life assurance cover
With a plethora of life assurance policies to choose from online it is often difficult to know which one to pick. Established in 1995; Jump Money have been helping people like you protect their family’s financial security should the unexpected happen for over a decade. For more information on their great range of products and services why not give one of Jump Money friendly staff a call on: 0845 8516262. Or alternatively take a look at the website at: www.jumplifeinsurance.co.uk for a life assurance cover online.
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