Life insurance cover term insurance

Life insurance cover – term insurance

So you have decided to take out life insurance cover but feeling a little confused by some of the terminology – believe me you wouldn’t be the first. I will now explain a little about one of the most common life insurance policies – term insurance.

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Life insurance cover – what is term insurance

In the world of life insurance cover ‘term insurance’ is possibly the most common, cheapest, and simplest to understand policy you are likely to come across.

The phrase ‘Term insurance’ basically refers to the fact that you are signing up to a life insurance policy that covers you for a particular length of time e.g. 10, 15 or 20 years. If you happen to die after the term has expired you get nothing.

Life insurance cover as a couple

As a couple it may be possible to get joint life insurance cover – this policy should pay out in the event either of you die during the term.

Types of life insurance cover

While term life insurance cover is relatively straightforward there may be some different options you may wish to consider.

  • Renewable – this type of life insurance policy will let you extend the original term of your policy. This can be useful if you are happy with your current provider. However, it’s always worth shopping around to see what is available when your policy cover expires.
  • Increasing policy – premiums and the level of cover will rise over the years. This type of life insurance cover is good for combating the effects of inflation.
  • Decreasing policy – premiums and the level of cover fall over the years. Are your children going to be self sufficient during the policy term? Are your mortgage payments going to end? There are a number of reasons why you may not need the same level of life insurance cover tomorrow as you do today.
  • Family income benefits – this type of life insurance cover pays out an income rather than a lump sum should you die. Could be useful if the dependants you are leaving behind are not very good at budgeting.

    • Choosing life insurance cover

    With a plethora of life insurance 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 insurance cover online.  

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