What type of life insurance you choose depends on what best fits your needs. The two most common types of life insurance policies are level term and decreasing term.
Level term: The amount you're covered for is fixed when you start paying your premiums, and it stays the same throughout the term. A guaranteed lump sum will be paid if you die during the policy term.
Decreasing term (also known as mortgage life insurance): With decreasing term, the amount of cover reduces over the length of the policy. Decreasing term is commonly used to cover the outstanding balance of a standard repayment mortgage.
Other things to consider:
Critical illness cover: This cover provides you with a lump sum if you’re diagnosed with a defined critical illness during the policy term; for example, some types of cancer or a stroke. The amount and types of illnesses covered vary by provider, so always check the policy details.
Joint life insurance: This type of policy will cover you and another person, paying out only once following a claim and then ending. A joint policy can be cheaper than taking out two single policies, but there will only be one payout. It’s worth getting quotes for both to see what best meets your needs.
Once you've decided which type of cover you'd like, it might be worth putting the policy into trust.
Looking for over 50s life insurance? It's a whole of life insurance policy available to UK residents aged 50 to 80. There is no medical required and acceptance is guaranteed. Pay outs from an over 50s policy could be used to cover funeral costs, household bills or leave a financial gift to loved ones.
Find out more about the different types of life insurance.