Uk Term Life Insurance

By Author: Termlifeinsurance
Total Articles: 3
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Introduction to Life Insurance
Before we see about UK Term Insurance, we must first know what is meant by Life Insurance and the benefit of it? When a person who provides income for his family dies then the family has to face critical financial problems. Life Insurance plays a vital role in avoiding this problem. For this, the person must have contract with the insurance company. If the insured person dies within the insurance period the company some amount of money to his/her family with the exception of income tax. The cash benefits will be given to the person who has been specified as beneficiaries by the insured person.
What is U.K Term Life Insurance
When we come for UK Term Life Insurance, the insured person has to pay constant or fixed premium over a particular period of time. Suppose if the insured person dies within the specified period then the company will pay sum of money to his/her family members. But if the person doesn't dies within the precise period, then the coverage will be taken over by the insurance company ...
... itself or the person can again extend the insurance period.

Why we need UK Term Life Insurance?

Everyone care for their family and they don't want their family members to face critical financial problems after his/her death. So Life Insurance is the only solution to this essential situation. It helps to protect your family member by providing the insurance money to them.
Overview of Different UK Term Life Insurance Policies
There are several insurance policies are available nowadays. Some of them are
Mortgage Protection
Funeral Cover
Business Life Insurance
Joint Life cover Insurance
Two Kinds of Non Investment Fixed Term Life Insurance
Level term life insurance
Decreasing term life insurance
Level term insurance
Level term life insurance quote is mainly intended to compensate a fixed bump amount in the event of your death. Level term life insurance can be set up in two ways. They are listed below
Single Life Plan
Joint Life Plan
Single Life Plan
In the single life plan the insured person needs to pay the premium at the initial of the policy term. This is mainly used for the rural people who have a seasonal income.
Joint Life Plan
The Joint life plan is a simple protection policy. As the name indicates, joint life plan is mainly designed to cover more than one insured person. The policyholder has to pay the premium amount periodically and regularly. If he/she fails to do so, then the term coverage will be lapsed.
Decreasing Term Life Insurance
In case of Decreasing Term Life Insurance, bulge amount will be paid at time of death of the insured person. This amount will be decreased by fixed amount and finally it will become zero when it reaches the end of the insured period. In this type of life insurance, the premium amount may depends on
Sum that has to be insured
Policyholder's age and sex
Whether he smoke or not
The main advantage of decreasing life insurance is that if the insured person dies, then a mortgage or loan will be paid to his/her family member and a cash amount is left. Another advantage is that it is cheaper when compared to that of term life insurance.Eventhough it has several advantages; it has some drawback in it. The main drawback in this is that if the insured person doesn't dies or survives beyond the insurance period then the policy has no maturity value.
About - The uk term life insurance policy is meant neither for savings nor for investment.It purely provides a method in which the person who paid his assured premium can now protect his family against his sudden death.