What life insurance policy do I need?

So, you’ve made the decision to buy life insurance. Now, you’re likely overwhelmed by the wide range of different products and policies available on the marketplace.

Below, we explain the different types of policy available and which one might best suit you and your needs.

Term life insurance

Term life insurance policies run for a fixed period of time (or ‘term’), for example 10 or 25 years, and pay out if you die within this period. You can choose between level term insurance, where the cover remains at a constant level throughout the policy, or decreasing term insurance, where the payout decreases over the policy term – this is usually used together with a repayment mortgage.

Whole of life insurance

Whole of life policies (as the name suggests) provide cover that lasts a lifetime and pay out on your death. Because these policies don’t usually have an end date, you’ll probably pay premiums until you die (although sometimes premiums will stop at a certain age, but you’ll still be covered until your death).

This type of life cover is usually more expensive because it will inevitably pay out one day, whereas term cover will only pay out if you die within the policy term.

Which one is right for me?

The answer to this question entirely depends on your circumstances. For advice in finding the life insurance policy that best suits your circumstances, please get in touch.