What is Life Cover?
Article published on 31st May 2012
What is Life Cover?
Life Cover is a type of Insurance where the Insurance company pays out a cash lump sum in the case of your death. People also call this type of Cover Life Assurance, Life Insurance, Term Life Insurance, Mortgage Life Insurance, Level Life Insurance and Decreasing Life Insurance.
How does Life Cover Work?
You pay a monthly premium to the Insurance company for the duration of the policy. If you pass away during this time the Insurance company will pay out a lump sum of money to the beneficiaries of your policy or to your estate.
You have many options when looking at Life Cover, they can often be tailor made for your needs and situation. Here at Top Quote Online we can help you in finding the right company and policy based on your situation.
What are Some of the Main Life Cover Policies?
There are three main types of Insurance Policy: Mortgage Life Insurance, Term Life Insurance and Whole of Life Insurance.
A Mortgage Life Insurance (sometimes called Decreasing Life Insurance) is designed to cover the outstanding liability of your mortgage and/or any loans that you have chosen to cover. In the unfortunate event of your death the Insurance company would provide your beneficiaries with the policy value to pay off these debts. This is a Cheap Life Insurance Policy because the amount of cover you have decreases over the length of the policy in line with your mortgage or loan.
A Term Life Insurance (or Level Life Insurance) is a type of policy that does not decrease over the length of the cover. These are good policies if you would like to leave some cash to help with funeral costs or even if its just to make life a bit easier for your loved ones. You also have the option to have the amount of cover increase with inflation which can provided added financial security for your loves ones.
Whole of Life Insurance is a Life Insurance policy that is very similar to a Term or Level Life Insurance policy. The difference being that you do not specify a length for the cover to run. As the name suggests this policy runs till the day you pass away and is guaranteed to pay out when you do. For this reason you will find that Whole of Life Insurance is the most expensive policy to take out. Same as with Term or Level Life Insurance you can have this policy increase with inflation too.
What is the Best Type of Policy for Me?
This is a common question we get here at Top Quote Online. It really depends on your situation and needs, as well as your financial position. The best way to find out the policy which is best suited for you is to give us a call on 0808 17 82 777. We have industry trained advisors who can give you a more detailed explanation of Life Cover and help you in finding the best policy for you.
How Much Will This Cost Me?
The cost of Life Cover really depends on what type of policy you take out and how long the cover should last, as well as a whole range of factors to do with the life you would like to insure. The best and easiest option is to use our free Online Quote page. Once you have filled in the short form we will search the whole of the market and return to you a list of Insurance companies that may provide you Life Cover, as well as how much each one will cost a month.
The Insurance world can be a confusing place and Life Insurance is no different. Your best option from here is to head on over to our free Online Quote page. This will give you a good idea of the price you are looking at for each different type of policy and the companies available to you. Or better yet you can give one of our industry trained advisors a call on 0808 17 82 777 and they will be more then happy to help you find the right policy for you.
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