Life Insurance

Life insurance and the variations available can be a minefield. Below we have explained some of the more common life insurance options available. For more information about life cover why not visit our sister site

Millions of people take out a Life Insurance Policy to safeguard their dependants when they die. This takes away the worry of outstanding mortgage payments for example. An agreed regular sum is paid to a lender who provides a policy that could also include Critical Illness Cover.

Critical Illness Cover - This policy is the one that becomes much more expensive as you person ages. There are a list of critical illnesses that each insuance company will have an they will pay out on your contracting them regardless of whether you survive or not. The list usualy include the main ones such as cancer, stroke, heart atach and multiple scoerosis. As one in three of us is likely to suffer from cancer in our lifetimes it may be wise to sign up!

A Level Term Assurance - This policy is a life assurance plan which will pays out a lump sum in the event of your death during a specified term. There are some plans which also pay out should you be diagnosed with a terminal illness.

The cost of life insurance will depend on the type of policy, your age, and your health. Being a smoker greatly increases the cost of the policy as there are so many associated illnesses due to smoking and the likelihood of illness is much greater.

A life insurance contract is made up three elements and these are;

Provisions - this part explains the benefits the features and the conditions of the policy.
Options - this part requires you to make a choice regarding the aspects of coverage.
Riders - This relates to the additional cover or endorsements that are offered to the policy holder at the time of taking out the policy - these are added to the policy and an additional premium loaded on to the policy to cover them.

You can apply for life insurance online and with some cases there will be no need to have a full medical. A medical examination is more likely to be required if the person is over 40. The medical is carried out by your GP and paid for by the insurance company. The medical checkup will normally include checks on blood pressure, heart rate, weight to height and questions on family history of health. Coverage will be "in force" when the insurance company receives your premium payment and any required forms of acceptance.

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