as hard to understand as life as apart
from what make is it and whats it say on the numberplate what else
do you need to know ?
With life there are a number of key factors you need to
understand before you make the purchase.
Level or Decreasing ?
Where level life is selected the amount of cover will stay the
same throughout the length of the insurance. Your payments will stay
the same except if you change cover. This is also known as term life
insurance or family protection and is ideal to cover interest only
mortgages or leave income for a family should you be no longer with
us.
Where decreasing life is selected the amount of cover will
reduce each year on the anniversary of the start date of your life
insurance. The amount of is calculated to match the
maximum outstanding on a loan in the next 12 months. This is the
basis for the decreasing life regardless of the purpose of
cover for example if not taken out to cover a loan or mortgage. The
payments will remain the same throughout the length of the cover.
Decreasing is often cheaper than level life as the sum
assured is coming down over the term of the policy.
Can the payments change ?
This is purely dependant on the type of basis you choose, this can
either be guaranteed or reviewable ?
Guranteed - If you choose to guarantee your payments they will not
change during the term of the cover unless you make any changes.
Reviewable - If you choose to make your payments reviewable they
may change during the length of the cover, these are offered to make
the payment more affordable at the start of the contract, more often
than not the review occurs after 5 years and then every 5 years during
the term of the contract. The review of the life could
recommend the policy premium is reduced - very unlikely, stay the
same - likely, go up in premium - likely. The review is not based on
your medical history or because you are older but normally on
industry claims experiance.
It says i have terminal illness included with my life whats
this ?
Terminal illness is normally included as standard to any good life
inusrance contract, this pays the guaranteed sum immediately rather
than upon death if you are diagnosed as being termninally ill with a
life expectancy of less than 12 months. This does not apply during
the last 18 months of the period of cover. Please dont confuse this
with critical illness cover as this is far more expensive option and
wont be included standard.
Should I place my life policy in trust ?
In a word yes, this will enable in the event of a claim the sum assured
of the life policy to go directly to the person or people you
decide. This also avoids the possibility of your estate having to pay
inheriatance tax on the proceeds of the policy. This is normally
offered as part of the service with any reputable life broker.
Article Source: Articles Beyond Better
For more information feel free to visit http://www.unbeatablelifeandcriticalinsurance.co.uk.
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