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What Life Insurance Do I Need?


Becky Simmonds,
25 April 2022

Reading time: 5 minutes

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Before you take out a Life Insurance policy, you need to work out exactly why you want to be covered. Do you have children, a partner or other relatives depending on your income to cover the mortgage or other living expenses? You might also want a policy that provides your loved ones with inheritance when you die, or simply cover your funeral expenses. Life Insurance is designed to provide you with the reassurance that your dependents are financially taken care of in the event of your death.

Most Life Insurance policies pay out a cash sum for your loved ones if you die while covered by the policy. The amount of money paid out depends on the level of cover you choose based on your circumstances.

Choosing the right type of Life Insurance

There are several different kinds of Life Insurance you can choose from, so how do you know which one is right for you? Everyone's needs are different, so it's important to understand which popular Life Insurance options are available and might be best suited to your needs.

Level Term Life Insurance

Level Term Life Insurance lasts for a set period or term, during which you pay a fixed monthly premium. It can provide your dependants with a fixed pay out if you pass away at any point during the term of the policy.

If the end of the term is reached before you pass away, your cover will expire, and you can stop making premium payments. When the term ends, some providers give you the option to renew it, you can go with a different provider, or choose not to pay for another policy.

Level Term Life Insurance can be ideal for protecting your family against large expenses if you were no longer around. The pay-out could be used to pay off the mortgage, childcare or university fees, personal debts or even your own funeral costs.

Whole of Life Insurance

Whole of Life Insurance is a type of Life Insurance policy that ensures that no matter when you die, your loved ones will receive a lump sum pay-out from your insurer.

The attraction of Whole of Life Insurance is that you will be covered for your entire life and whenever you pass away, your policy will pay-out. If you keep up the regular monthly or annual payments, you know that the money will be paid-out.

Whole of Life Insurance is generally more expensive than term Life Insurance for the simple reason that the pay-out is guaranteed, and insurers will have to pay out money when you die. For many people, the cost of Whole of Life premiums is a minor price to pay, as it ensures your family will be financially protected in your absence, no matter when you pass away.

Critical Illness

Critical Illness cover is a form of insurance that protects you if you are diagnosed with a certain illness or disability. It pays out a lump sum which can be used for whatever you deem necessary but could be used for things such as private medical treatment, necessary adaptations to your home or covering the loss of income if you are no longer able to work.

Critical Illness cover, also known as CIC, will pay out if you were to get one of the specific medical conditions or injuries listed in your policy, which may vary between providers. Examples of Critical Illness that might be typically covered include heart attacks, strokes, and some forms/stages of cancer. You should check with your consultant what is covered and what's not before taking out your policy.

Speak to an expert

Insurance planning can be a complex area, so it's important you consider talking to a specialist and finding out about which Life Insurance type suits your needs.

Call [phone number - 01489 663 180] or make an enquiry at QuoteSearch.com and we'll help you get a free no-obligation quote with an expert, so you can find the right Life Insurance cover for you.

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