Cheap Life Insurance
Life insurance may not seem important when you are young, single and carefree, but as soon as you buy a house, take a partner, or have a family, it becomes a real issue. No one really likes to contemplate their own demise so it is best to get the life cover in place and forget about it. You can then relax, knowing that whatever happens, your mortgage will be paid off and you have provided for your family. Our aim at Money Discount Centre is to help you find the most appropriate policy for your needs.
There are a number of different life policies, the most basic and the cheapest of which is term assurance. This pays out a lump sum if your death occurs during a specified period. Those with families often choose this option to cover the period until the children become independent.
Whole of life policies are more expensive and cover you until you die. They cost a lot more and are used by many to cover inheritance taxes. Your premiums cover the lump sum payout and also build up an investment reserve. This means if you should cancel the policy, it may have an early surrender value.
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Joint life cover is a cheaper way for couples to insure themselves. Pay out is made when the first person dies.
An endowment life insurance is a savings scheme with a life insurance element. These policies are generally linked to the stock market and therefore have an element of risk. At the end of the term, depending on the market, you may find your payout is less than the premiums you have paid.
There are level term life insurances which pay out a specified sum with no bonuses. These are relatively cheap and are often used to protect interest only mortgages. On the other hand, decreasing term insurance is used to protect repayment mortgages. Increasing term insurance protects against inflation. Premiums will obviously increase during the term of the policy.