With so many options available, choosing the right life insurance policy for you and your family can get a bit confusing – but don't worry, Bob is here to help!
Following on from our recent guide about the benefits of life insurance, below you’ll find a complete guide explaining all the different types of life insurance and what each of them can offer you.
If you have any questions regarding life insurance you can find more information on our main life insurance page - where you can use our life insurance calculator and get a free quote.
Life insurance types
In simple terms there are two main types of life insurance – whole of life insurance and term life insurance.
Whole of life insurance
As the name suggests, this type of life insurance policy runs for the length of the policyholder’s life and pays out a lump sum when they die, assuming premiums are up to date.
To get a quote and find out more visit our Whole Of Life Insurance Quotes page.
Term life insurance
As an alternative to whole of life insurance, term life insurance allows you to choose both the amount you want to insure your life for and the length of time you need cover. If you then pass away within that ‘term’, the policy will pay out to your dependents/beneficiaries.
This makes term life insurance typically cheaper than whole of life cover which doesn't have an end date.
To find out more about term life insurance and to get a free quote, visit our Term Life Insurance page.
Bob says there are lots of different term life insurance variations, all of which need to be considered before you decide on a policy. The type described above is also known as ‘level term life insurance’, but there are others…
Decreasing term insurance
This is also commonly referred to as ‘mortgage life insurance’, as the potential pay-out is structured to decrease each year in line with the policyholders falling mortgage borrowing – which naturally leads to lower premiums than normal or level term insurance.
If you need any help or advice about life insurance policies and which one is best for you, get in touch with Bob's friends at bobatoo.co.uk today. You can contact them or request a call back here or get a free quote here
You can also use Bob's free life insurance calculator to see how affordable your monthly premiums could be (terms and conditions apply).
For a fuller explanation and more detail on the different types of life insurance policies available, see our guide here.