Jargon Buster - Definition of Life Insurance

Please select your letter of choice below to see the list of terms:

Life Insurance

is an insurance policy that pays out a sum of money in the event of the death of the life assured. It can usually be set to pay out a lump sum of money or a monthly/annual income.

There are different types of Life Insurance that work in different ways, some examples are:

  • Level Cover
  • Decreasing or Mortgage Cover
  • Family Income Benefit
  • Renewable Term
  • Convertible Term
  • Whole of Life

By default Life Insurance pays a claim to you estate or to a second plan holder. This can and often should be changed by writing the policy into trust for you own nominated beneficiaries.

See Also:

Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.

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