Life Insurance - A simple introduction

A life insurance policy will pay out a tax-free lump sum if the insured dies during its term. It is a necessary kind of insurance for most people and is widely considered essential for people who have dependants.

A life policy is an affordable means to make provisions for your loved ones after your death. There are many different types of life policy available. Cover can be basic and cheap or fully comprehensive and expensive. The amount of insurance you will need will depend on your personal circumstances, including, how many children you have and your income. The cost of life insurance increases with the age of an applicant. If you are less than fifty years old, you should be able to find an affordable and good value plan. After the age of fifty, premiums increase steeply. Applicants that are seventy years or older will be unlikely to find an insurance provider who will cover them.

It follows that if you want a cheap life insurance plan, it is a good idea to buy it whilst you are young. A policy may last for a set duration, called a term or for your whole life. A term policy is far cheaper than a whole life plan. With such, it is possible to opt for a policy that can be converted to a whole life plan later in life, by which time most applicants will have more money available.

Browse the articles on our site to find information about the different types of life plans available and to help you decide which sort of plan is most suited to you and gives you best life cover.