Types of Life Insurance – Which one is right for you

Are you considering taking out life insurance to protect your family’s financial future? There are several options to choose from depending on your specific needs. Whether you’re looking for a policy to cater for your medical bills, mortgage payments or final expenses, life insurance is here to fulfill your wish.

Keep scrolling to find out which of the eight policies we discuss below is right for you.

Level term life insurance

Level term life insurance can guarantee your family financial protection should you pass away within the contract period. A lot of people take out this policy to ensure that their dependents do not get into financial distress should the worst happen. Premiums for level term insurance are generally affordable compared to other policies.

The best part is that the payout is usually guaranteed regardless of when the policyholder departs during the contract term. Learn more about the advantages of level term life policy over at Caspian Insurance.

Whole of Life insurance

The whole of Life is a little different from a level-term life insurance policy.

Whole life insurance guarantees the financial protection of your loved ones regardless of when you pass away. But this also means you will pay higher premiums for it.

If you want a one-off policy that eliminates the hassle of having to replace the cover after every expiration, this plan is for you.

Your dependents can use the lump sum payout to cover funeral expenses, inheritance tax, everyday living costs, and more.

Critical illness cover

As the name alludes, critical illness cover can guarantee protection for serious medical emergencies like stroke, heart attack, and some stages of cancer. The policy provides a lump sum benefit payment if you get diagnosed with a critical illness or have to undergo surgery.

If you’re worried that your family might struggle financially during the diagnosis, treatment, and recovery process, critical illness cover is for you. However, note that the policy doesn’t cover all conditions. So you want to review the policy document thoroughly to avoid any disappointments during the claim process.

Mortgage life insurance

Are you worried that your family might not afford to finance the mortgage should anything happen to you? Mortgage life insurance can put those uncertainties to rest. The policy pays out a lump sum amount to your loved ones if you pass within the contract term. They can use the benefit to clear the unpaid mortgage at the time of your demise.

Here’s one thing to remember, though; the cover reduces over time (as you keep repaying your mortgage). Should you pass within the contract term, the policy will pay what’s left on your mortgage repayment as a lump sum.

Over 50s life insurance

If you have trouble securing regular life insurance due to your current state of health or lifestyle, over 50s cover can accommodate you. Preserved for those aged between 50-80 years, the policy protects your loved ones financially should you pass away.

However, there’s a small catch; some policies include a qualification period, usually between one and two years. You’re expected to outlive this period to secure the full benefit payout. And should you pass during the qualification period, the benefit amount payable depends on what you paid into the policy.

Income protection insurance

Can your family cope financially if you were to get ill for an extended period and thus not able to work? If no, that’s an indication you need income protection insurance. The policy offers to cover a portion of your income (50-70%) until you’re fit to return to work or retire.

You and your family can use the policy’s payout for whatever reason you deem appropriate. And the best part? You can claim income protection as many times as you want, provided the policy is still active.

Family income benefit

Family income protection insurance offers to pay your dependents a regular income for a preset period if you were to pass away during the covered term. The policy provides steady, easily manageable monthly income that lasts for a more extended period.

As the policyholder, it’s upon you to decide how much you’d like your family to receive each month as well as for how long. You’re then required to pay premiums corresponding to your predetermined amount.

If you pass away within the contract period, your family will receive financial support for the rest of the term. However, if you pass after the policy term, there will be no pay-out.

Non-medical life insurance

If you wish to get covered without undergoing any medical screening, non-medical life insurance is for you. All you have to do is answer basic questions about your health and lifestyle, and nothing past that.

The provider is usually willing to offer your coverage straight away if they believe you’re at low risk of developing further health complications. However, you must be extremely honest with your answers for a correct assessment of your current health condition.

Conclusion

And that’s it! From this comprehensive list of the best life insurance covers, you should be able to pick your preferred choice depending on your specific needs. Whether you’re looking to safeguard your home, leave an inheritance to your loved ones, or finance their daily living costs, there’s something out there for you.