Life Insurance - The two types explained
When it comes to insurance, there are things in life we can’t control. But there are also things we can make sure we’re covered for, for general peace of mind. Insurance can mean you don’t have to worry if your car is in a bump, if you need a filing or have broken your arm, if the computer blows up, or whether you’re made redundant. Life insurance means you can be rest assured that your family will receive payments in the event of your death.
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General Insurance
It’s important you have both general insurance and life insurance. Especially if you have people who depend on you and responsibilities and assets, such as a mortgage or home. General insurance covers:
- Your house and its contents
- Car
- Travel
- Medical or dental treatment (private)
- Mortgage payments
Life Insurance
Life insurance is a long-term policy that pays out at the end of a term. There are two types of life insurance – Protection only known as ‘term insurance’. Term insurance is the kind of life insurance that pays out if you die within a specified period. If you die outside of that period, it pays nothing. The other type of life insurance is the endowment policies that have an investment aspect. The intention of investment-styled life insurance is to build value over the years. Some kinds of pension schemes count as investment-type life insurance.
Which one should you buy?
When it comes to life insurance, knowing whether to choose term insurance or an investment-based policy largely depends on your circumstances. In general, it is cheaper to buy term insurance cover. Before you buy life insurance it’s advisable to seek independent financial help so you choose the policy best suited to your lifestyle needs. You should be conscious of any exclusions or restrictions on the life insurance you take out.
Like any financial product, it’s important you research and understand what you are buying before you buy. It’s also important that you shop around before you take out any type of life insurance. The key questions you should ask are:
- What are my exact needs for life insurance?
- What can I afford to pay on a life insurance policy?
Jump Money are specialists in life insurance and are there to answer any questions you may have related to life insurance, life assurance, term insurance and life cover. They will strive to fit an insurance package to the exact criteria you need in order to help you avoid buying products you do not need as well as helping you fully understand your purchase.
To find out more about how Jump Money can help you protect yourself and your belongings call now on 0845 8516262 or visit the website at www.jumplifeinsurance.co.uk.
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