What is a life insurance policy

A policy that gives you and your loved ones protection from any unexpected calamity is a life insurance policy. Being known to the fact that if someone happens to you, your family will stay strong financially down the road will put you at ease.


The most easily to understand as well as the most affordable is the term life policy. In 5-years’ time, the insurer specifies the increments as well as the contract’s length. In this policy several flexible options are also available. This policy provides protections and also does not complicate things with extras

Term life insurance is affordable because it provides protection for specific time. You may opt for term life insurance if:

  • You want to get maximum coverage at an affordable cost.
  • You want to cover financial problems like mortgage or tuition expenses.
  • Supplement either a permanent or a work policy
  • Simplified Issuance of Term Life Insurance

If the coverage amount is below £100,000, simplified issuance of term life insurance is being offered. This requires no medical certification or any exam and approval on the very same day. This policy can also be bought over the phone in no time.


If coverage amount reaches up to £100,000 or more, term life insurance policies with guaranteed premiums are offered. These premiums do not increase over the length of the term. This can be opted for at any time and over the phone.


A term can be selected by the insurer of either 10, 15, 20 or 30 years. A guaranteed lump sum amount of money is given to the beneficiary. The premiums in term life insurance policy remain the same over the length of time. A number of extra benefits are also available that would help in the coverage of other needs.

However in most of the cases of term life insurance, the insurance company never pays out because the insurer usually outlive the term and the policy expires. However, a rise is term life premiums with age is effective whereas the premiums offered by whole life premiums stay steady. Late in life, they can turn out to become cost-prohibitive.


Once it has been chosen to take term life insurance policy, the actual cost of the insurance is based on many factors. The age and health add to be the biggest cost factor. The following factors effects the cost of term life insurance policy:

  • Health
  • Smoking habits; Smoker/non-smoker494
  • Family history (in case of any disease)
  • Age
  • Gender
  • Lifestyle (high-risk activities)
  • Work environment and place
  • Home place

This life insurance policy acts a lot like an auto insurance making it much easier to be understood. Like insurance paid for a car. The premiums are paid as long as the insurer desires to be covered. But if the insurer passes away the company holds on to the money and provide nothing to the beneficiary.

Cost Of Whole Life Insurance

Similar to term insurance policy, whole life insurance policy commits to the payment of specific amount of money to the beneficiary upon the death of the policy holder. The whole life insurance policy is committed not committed to a set period of time rather it pays the benefits as long as the premiums have been paid.

Once an individual takes whole life coverage, it can neither be revoked nor reduced or cancelled. However, in case of frauds and non-payment this condition does not hold. The primary advantages include:

  • Lifelong protection – it is not subjected to expiration nor there is decrease in the value.
  • Level premiums – the policy rate that is being paid will never increase
  • Cash value – cash value is built over a portion of premiums and this cash value can be borrowed against.
  • Guaranteed death benefit – there is a guarantee that the beneficiary will receive the amount.

The decision to buy whole life insurance rather than any other is a personal choice and depends on the finances, age, and coverage goals. The first part in the decision making process when it comes to adopting any type of insurance policy is cost. The cost of whole life policies are significantly more than several other type for the same coverage amount. Even though the cost stagnant level is guaranteed but the main concern is to have adequate amount of coverage when required.

The process of deciding whether or not to go for a whole life policy starts with determining the needs of life insurance. Several life insurance calculators are also available over the internet. The American Institute of Certified Public Accountants 360 Degrees of Financial Literacy website provides an individual to calculate via Life Insurance Calculator. This phenomena help in determination of the required coverage.

If compared to term coverage, the cost of whole life coverage is approximately six to eight times higher. This leads to a prominent issue faced by many insurance companies. Cost is a crucial and considerable factor in purchasing a whole life insurance but if should not be the deciding factor.

If need and cost are balanced wisely, getting a mixture of term and whole life policy may be a suitable solution.

Reviewing the cited literature of ‘Life Insurance Settlement Association’ reveals the fact that overreaching personal budgets is a major reason of individuals surrendering their policies or allowing them to lapse. As long as the whole life insurance policy is kept, the individual opting for the policy is at benefit at the right time and in the right circumstances, the benefits that are provided by whole life insurance policy outweighs the added cost.

Before making any decision over whether or not to purchase whole life insurance policy, and further deciding how much to spend over it, should be made keeping in view the future of both; the financial and physical health of the individual opting for it. If a certain life insurance cannot turn out to be helpful when required, purchasing it will turn out to be a wastage.

feeling secure when you know you have life insurance cover is possible

Security is a precious modern day commodity. When you are secure about your future, you can function better at work and at home. One way of doing that is feeling secure when you know you have life insurance cover. Possessing such type of insurance cover is possible if you do the right steps. It is relatively easy to purchase life insurance cover online. There are thousands of independent brokers, banks and insurance firm who are offering to do the transaction online. In instances where the insurance coverage is runs into thousands of pounds, a person-to-person meeting may be more appropriate instead of doing it online.

It Guarantees You Lump Sum Payment

A reason for financial security in life insurance is the guarantee of a lump sum payment. If you have life insurance, in the event that you die your beneficiary will get a lump sum payment. Unless you die of causes that are excluded in the policy, your beneficiary will sure get the money. While the government does give away something if you are employed, this cannot be assured and the amount may be insignificant. For the future of your family or your dependent, life insurance is a must on your part.

It Can Be Purchased Together with Other Insurance

The good thing about life insurance is that you can have it together with other types of insurance. One such type is insurance that is becoming popular is death in service insurance. This is insurance that pays a lump sum if you die while working. If you only have this type of insurance you can add a regular life insurance policy. On the other hand if what you have is an insurance policy you can top it off with a death in service insurance.

A second addition can be income protection insurance. This type of insurance protects your income in case you get ill. If you have monthly mortgage payments, this type of insurance can really help. It will pay your monthly payments until such time that you can return to work. Many have saved the mortgaged home because they prepared for such an eventuality.

You can also add critical illness insurance. This will pay for medical costs and medicine in case you get a life-threatening illness. It will also pay out a lump sum or monthly payments depending on the option that you choose. If you choose monthly payment option, you can use the amount for other things other than medical bills. If you can afford it, additional insurance can be helpful.

It Can Provide Peace of Mind

You can have peace of mind if you are feeling secure when you know you have life insurance cover. Sometimes, the best thing in life is not to have a new house or a new car. Peace of mind can be something that will bring so many good things to you. You can sleep better, you can work harder and you can enjoy life more. You won’t be constantly worried when you got peace of mind due to good life insurance cover.

Some Tips in Saving Money

Saving money is very personal. For some people it is very easy, they were brought up that way. For others, it is very difficult, they spend everything on their pockets. No one was ever born to be a person who naturally saves. It is a skill that is learned and practiced. If you want to save then you should start now.

Those who save usually have lesser financial woes than spenders. Since it is very easy to be spender than to be a saver, you need some tips on saving money. Some tips are applicable and some are not. All of them have a common denominator, they will help you save money and that is the most important thing of all.

Cool Off Before You Buy

Humans are visually oriented. Whenever you see an item on discounted price or an expensive item on sale, you just experience that strong urge to buy. Buying is an emotional thing. You buy because you like it and the ad has played into your emotions. If you want to experience saving money, cool off before you buy.

It basically means do not buy yet but allow time to pass before you buy. You will argue that you need to buy now because it’s on sale. That is exactly the point. Do not buy now because the sale is playing with your emotions. After three days, you won’t have the urge to buy. In fact you will forget the whole thing.

Break the Credit Card Habit

Purchasing items using your credit card is a habit. When you go to the grocery you pay by credit card. When you go to the filling station to buy petrol, you get your card and use it to pay. When there is an item on zero interest to get your card to pay. If saving money is your goal, never buy by credit card on a zero interest item. The interest is already added on the purchase price. Instead, pay on cash and ask for a rebate.

Look for Anything Free

There are freebies anywhere from shampoos, soap and a list of grocery items. Do not be ashamed but take advantage of companies that are giving away free stuff. They can save you lots of pounds in the long run. Saving money cannot be this easy.

Sell Anything on eBay

Clean your closets and look for stuff you have not used for years. It can be anything from clothes to jewellery. Take photos of the items and sell them on eBay. You will be surprised when you have offers.

Collect your Coins

You may just leave your coins and pennies lying around somewhere. One principle is saving money is that you do it in increments. When you gather those coins in one place you can exchange them for pounds later.