Life Insurance – An introduction to insurance

What will be covered on the insurance policy?

General insurance is bought on a short term basis, covering material goods such as homes, cars and travel as well as private health care, whereas life insurance is more of a long term commitment. Life insurance can sound like a daunting and very general phrase but in reality, there are only two types of life insurance to choose between:

Protection-only: This can be seen as the “cheaper option” as it only pays out if you pass away within a particular time frame. It is a quick fix to protecting your family financially if the worst should happen.

Investment-type life insurance: The investment type policies differ in the sense that you can “cash in” during your life time as well as a pay out when you die. Certain pension schemes also fall under this title.

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What to look out for

Anyone providing life insurance or giving advice on life insurance must be approved by the Financial Services Authority. Before choosing a provider you can check their credibility through the FSA website.

Types of adviser

Currently, providers must fall under one of two titles:

Tied: This means that the individual only sells products for one provider.

Independent:Independent advisers have a free rein to offer you products from the entire insurance market. Independent Financial Advisers (IFA’s) also fall under this category.

Who to go for

Before you make any financial commitment it is vital that you look at every option:

Assess your own budget and set a realistic figure that you can afford and to stick to it!

Work out exactly what type of cover you need to prevent you from buying too little or too much cover.

Research companies by phone or internet so you can get a feel for the market before you sign up for anything.

Jump Life Insurance

Established in 1995, specialise in providing people with life insurance. Jump Life Insurance uses some of the top providers to make the purchasing of your financial products as simple as possible. To find out more or to speak to one of their team call now on 0844 417 0894 or visit their website at: www.jumplifeinsurance.co.uk

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