Individual life insurance is arguably the biggest investment you can make in your loved ones’ security. It’s a complicated field, but don’t let that put you off. We’ll be happy to talk you through the options.
First, you’ll need to determine the type of life insurance you want to buy, with the most common types being term life insurance, whole life insurance and universal life insurance.
To put it very simply, with term life insurance you pay regular premiums for a set period and the policy only pays out if you die during this period.
With whole life insurance, there’s no set period. You usually pay regular premiums until you die, at which point the policy pays out. Sometimes you have the option to take a lump sum back while you are still alive, but this will reduce the amount paid out when you die.
Universal life insurance works in a similar way to whole life insurance, but you have more flexibility about taking money early. You can even borrow money and repay it later; although, if there’s any loan outstanding when you die, the policy’s payout can be significantly affected.
The premiums you pay depend heavily on your age and medical history, along with the amount you want the policy to pay out. So, it’s important to seek expert advice before committing to life insurance.
Contact us and we’ll walk you through the options and help you to determine if term life insurance, whole life insurance or universal life insurance are right for you.