Life cover – Glossary part 1
Life cover is not the most straightforward thing to arrange at the best of times. It can be even more stressful if you are completely new to the process and are unfamiliar with the terminology that gets banded about by insurance brokers as well as websites. The following glossary will attempt to clarify some of the most common life cover terms in the most straightforward way possible.
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Life cover – the terminology
Term insurance
A life insurance plan that is valid for a predefined length of time, e.g. 10 or 15 yearsLife assurance / whole life policy / permanent life insurance
There are a number of terms for this type of life cover but essentially they all mean the same thing. This is a policy that lasts you ‘whole life’ and pays out whenever you die. For this reason it is often more expensive than term life cover.Mortgage protection plan
A life cover plan specifically designed to cover the balance of your mortgage should you die before paying it off. A good option if your mortgage repayments are the primary reason you are taking out life cover. This is because the premiums continue to fall as you pay off your mortgage, (after all there is less for the insurer to pay as time goes on).Critical illness cover
This is sometimes an option and is often already included in many life cover plans. It is means that a lump sum is paid out should you be diagnosed with a specific critical illness. This can be useful as you are likely to be out of work – it can also help to pay for the cost of care etc.
Choosing the right life cover
With a plethora of life cover 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 cover comparison quote online.
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