What are the different types of Life Insurance?

There are a number of different types of life insurance which we have discussed below. Most people have Life Insurance in order to:

• Mortgage Life Insurance (Mortgage Protection Insurance) specifically pays off your repayment mortgage.
• Life Insurance (Term Insurance) pays off debts like a mortgage, or provides a lump sum nest egg for the next of kin - usually dependents such as the wife and/or children).
• Family Income Insurance provides an income for your dependents, in the event of your death, instead of a lump sum. They will continue to receive an income until the policy ends its term.

Life insurance can be paid monthly or yearly, and the premiums for will vary depending on how long you want the policy for and your personal circumstances - i.e. your age and medical history.

You can combine life insurance with other forms of insurance like Critical Illness (also known as Serious Illness Insurance) so you will receive a payout in any eventuality. You can arrange critical illness insurance separately, but if you buy a combined policy (with life insurance) then it works out a lot cheaper than buying them separately.