Level Term Life Insurance is a cost effective way of arranging life assurance.
Level Term Life Insurance is often used for family protection purposes by providing life insurance cover in the event of the death of the life or lives assured for the benefit of the surviving spouse and, if there are any, the dependant children.
The amount of life cover provided is often agreed upon after receiving advice from a financial adviser who will assess a family’s requirements taking into account a number of factors.
The amount of Level Term Life Insurance remains level for a specific term i.e 25 years and is arranged normally on a sole life or joint life first death basis with the premium often remaining constant throughout the term.
If the life assured outlives the term then the Level Term Life Insurance policy normally finishes and the life policy pays out nothing. This is one of the reasons why Level Term Life Insurance is normally cheaper than say a Whole of Life policy.
Level Term Life Insurance is also used to cover personal and business liabilities such as overdrafts.
Critical illness cover can sometimes be included in the Level Term Life Insurance policy to pay out upon one of the assured being diagnosed with a specific critical illness.
Alan Hope operates a lifestyle management and concierge services business for both UK and overseas clients. Please visit his website at http://www.arrangeitlifestylemanagement.co.uk.

Buying life and health insurance products is something that many of us keep putting off for as long as we possibly can. We know that we should buy into these insurance policies but we tend to shelf the idea, preferring to live for today rather than plan for tomorrow. Rather like an ostrich sticking its head in the sand, a lot of us it seems choose to take our chances in the hope that our circumstances will never merit the use of life or health insurance. But it can be an awfully big gamble to take.

Advantages of a life and health insurance policy

As we get older we often become more susceptible to health problems, disability and poor mobility; eventually of course we will all die. Both situations are naturally very distressing for family and dependants. However, the situation can be made worse if the ill / deceased was the main income producer and there are still bills to pay. The last thing anybody wants in this situation is to have the bailiffs knocking at the door, or your home repossessed because you cannot keep up your mortgage repayments.

A life and health insurance policy combines cover for the likely and the inevitable. By opting to take out a life and health insurance policy you and your family will have peace of mind that should you become critically ill or die during the term of the policy, your family and dependants will be financially secure. There will be no worries about bailiffs or repossession orders and through the health insurance side of the policy you’ll be able to select a level of quality health care to suit your needs rather than relying on treatment through the NHS.

Cover provided by a life and health insurance policy

The cover provided by a life and health insurance policy is quite comprehensive. On the life insurance side of the policy you will be able to choose between a term life insurance product and a reducing or decreasing life insurance product.

Term life insurance via the policy pays out a fixed lump sum upon the death of the policyholder, providing the insurance policy is still active. A reducing term life insurance policy is a type of insurance where the amount paid out upon death reduces to zero in line with the policyholder’s mortgage balance, and is suitable only as a financial instrument with which to pay off the mortgage in the event of an early death. If you want to leave your loved ones in complete financial security then a term life option on the policy is recommended.

The health insurance part of the mega insurance policy provides comprehensive health care. It will cover you for all diagnosis, treatment and recovery costs associated with the illnesses, disability and diseases noted on the mega policy. Health insurance also means that you do not have to wait for treatment on the NHS. Instead, you will be able to select when and where you want to receive treatment, so tailoring it to your own convenience.

Most people are aware of how life insurance works and what are the events and dangers that it is designed to protect against. They may also have family commitments and people who they provide for and know that some sort of life insurance would protect their family financially, if something were to happen to them. However, it is still often a very difficult decision to make if you are trying to decide whether or not you need life insurance.
Life insurance is a big commitment financially speaking. The premium can vary in cost but can be considerable, then there is also the issue that life insurance often extends over many years, even decades. This means that not only are you committing to pay the premium for this year, but also for many years into the future. There are not many people who can say with certainty what their earnings will be in ten or fifteen or twenty years time.
There are also early termination penalties, which means if you want to end the policy before the expiration of the entire term, you will be financially penalised. This is generally more relevant for life assurance but can also apply to life insurance if your rate has been calculated on the condition that you remain insured for so many years into the future.
If you have life assurance, then it will also be a method of saving for the future. This is a very popular concept, especially these days with the growing concern about the state of pension funds, but it again deserves careful consideration. There are many ways to save for the future, and by deciding to do so by way of a life assurance policy still entails deciding that life insurance is something that you want and are willing to pay for. If you do not need life insurance, then there are probably more efficient ways of saving for retirement than with life assurance, which places a proportion of your savings against the insurance aspect of the policy.
In general, most people will really only be considering life insurance if they have a family to support. This can be a spouse and generally children. However, situations frequently change, people get divorced, and children always grow up and become independent. If your family situation is likely to change, you should familiarise yourself with the ways you can end the policy early and what penalties would apply. However, if you have a young family and are concerned about their financial security for the future, then life insurance will be a great opportunity for you to provide for these concerns.
Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of insurance in the UK. If you found this article interesting you may find more articles of the same nature in the insurance guide located on site.

When it comes to selecting life insurance policies the Internet is the place to look for the best offers. Life insurance companies have flocked to the Internet in recent times, supplying online life insurance hunters with an extensive choice of life policies. The growth in the number of life insurance companies servicing life insurance polices has made a significant impact on life insurance premiums too, bringing them down to record low levels. Basic life insurance cover can now be acquired for less than 50p per day, and in some instances for as little as 20p per day.

Besides choice and price, the Internet also offers convenience to people who are looking for life insurance polices. Life insurance information can be gathered and insurance quotes asked for at any time of the day or night. If it suits you to search out information on life insurance policies at five in the morning, then life insurance companies on the Internet are there for you at five in the morning.

Choosing between life insurance policies

There are four types of life insurance policy available from most life insurance companies. These are level term life insurance, level term life insurance with critical illness, reducing term life insurance and reducing term life insurance with critical illness.

Level term life insurance is the most basic type of the four policies. It guarantees pay out upon death of the policyholder should he / she die during the term of the policy. The premiums remain the same throughout the life cover as does the amount paid out in the event of death. It is important to note that many level term policies have an upper age limit after which the life company becomes free of its obligation to pay out.

Reducing term life insurance, which is also known as mortgage life insurance, works a little differently to level term policies. These are shorter policies that are normally taken out over the same term as a mortgage and guarantees pay out in the event of death during the term. However, unlike level term insurance the amount paid out on a claim reduces in line with the outstanding mortgage balance, so ensuring that loved ones left behind are not in danger of losing the roof over their heads.

Both level term life & reducing term life policies can be coupled with a critical illness product. This ensures that the policyholder and their family have an income for a certain period of time should the policyholder become critically ill and be unable to return to work. Critical illness policies also come with life insurance payment waivers so you don’t have to worry about your life insurance premium payments while you are in a critically ill state.

Life insurance has no ‘investment value’ while Life Assurance is strictly for investment purposes only in most instances. Most life insurance policies provide a measure of ’security’ and hope to policyholders for the length of the term. However, the policy must be active when the policyholder dies; otherwise, there is no coverage available. If the policyholder has an active policy and finds that he is ill, expected to live a short time, then the policyholder will have the coverage he needs. On the other hand, if the policyholder meets the term of life coverage and extends to another year, then the policy is often outdated. Thus, the life insurance coverage plans are operable when the policyholder has a ‘claim.’
As you can see life insurance, policy has nothing to offer in line of investment, thus if you are searching to invest in policies then you will need to consider the life assurance plans. Life Assurance is an investment value package, and the policy unites ‘guaranteed insurance” and ‘none guaranteed investment.’ If the policyholder takes out an assurance policy of 50,000 then the policies value is equal to the ‘guaranteed sum’ of the ‘policy.’ Of course, this will include the length of the term the policy is active. The investment will also be factored on the “Insurance Company’s Investment Performance.”
For the most part life insurance companies that offer assurance plans will ‘payout’ the guaranteed sum on the policy, ‘or the value of the annual investment bonuses” if any were incorporated during the term of agreement. As you can see, the investment is the initial costs of the assurance policy, but if you purchase bonuses throughout the term of the policy, you will have invested in equity so to speak. This means that during the course of the term equity is building on the life insurance plan. Thus, when considering Life Assurance calculate the timeframe that you expect the term to extend.
Unlike life insurance policies, if you survive life assurance plans you will receive ‘terminal’ investment, bonuses and investment payouts. If you have life insurance and live beyond the term then there is no payout. Life Assurance policies are often nicer to have than life insurance coverage if you are searching for investment, since the policyholder can cash in on investments after extended time allotted on the policy. Still, if the policyholder wishes to do so, he could sell his policy to another investor or broker and make additional profit. In some instances, an assurance holder receives more profit by selling out on the policy.
The downside is that nowadays the assurance policies are not worth the investment price if sold to third parties and few companies’ have incorporated stipulations on cashing in on assurance policies. Make sure you read your terms to find out more about cash INS, because few companies’ charge fees for cash INS.
Life insurance policies are more affordable than life assurance plans. For the most part life insurance is for those that do not wish to invest. At one time investors were wise to take out life assurance plans, but nowadays the hassle involved may not be worth the time, investment and bonuses combined. Life insurance again does not have equity, and once the policy ends there is no money involved. Thus, if you are considering life insurance make sure you keep up with renewals so that your loved ones are covered if death occurs. Life insurance is optional over life assurance policies, since it will offer you coverage for funeral and mortgage payouts if you have combined the policy, thus covering mortgage.
For more information on life insurance and life assurance, the best place to look is online. Online you will find a wealth of information that will help you understand which policy is right for you. Finally, if you are considering life insurance you may want to discuss Critical Illness and Terminal Illness, since it will cover illness, mortgage, medical expenses, and so forth.
Authored by Michael Bens. For more great information about all forms of insurance visit our free online insurance publication the Gabae Insurance Source to find the information you’re looking for!
Also you can check out Gabae Insurance Articles to find the articles’ you’re looking for!

When it comes to selecting life insurance policies the Internet is the place to look for the best offers. Life insurance companies have flocked to the Internet in recent times, supplying online life insurance hunters with an extensive choice of life policies. The growth in the number of life insurance companies servicing life insurance polices has made a significant impact on life insurance premiums too, bringing them down to record low levels. Basic life insurance cover can now be acquired for less than 50p per day, and in some instances for as little as 20p per day.

Besides choice and price, the Internet also offers convenience to people who are looking for life insurance polices. Life insurance information can be gathered and insurance quotes asked for at any time of the day or night. If it suits you to search out information on life insurance policies at five in the morning, then life insurance companies on the Internet are there for you at five in the morning.

Choosing between life insurance policies

There are four types of life insurance policy available from most life insurance companies. These are level term life insurance, level term life insurance with critical illness, reducing term life insurance and reducing term life insurance with critical illness.

Level term life insurance is the most basic type of the four policies. It guarantees pay out upon death of the policyholder should he / she die during the term of the policy. The premiums remain the same throughout the life cover as does the amount paid out in the event of death. It is important to note that many level term policies have an upper age limit after which the life company becomes free of its obligation to pay out.

Reducing term life insurance, which is also known as mortgage life insurance, works a little differently to level term policies. These are shorter policies that are normally taken out over the same term as a mortgage and guarantees pay out in the event of death during the term. However, unlike level term insurance the amount paid out on a claim reduces in line with the outstanding mortgage balance, so ensuring that loved ones left behind are not in danger of losing the roof over their heads.

Both level term life & reducing term life policies can be coupled with a critical illness product. This ensures that the policyholder and their family have an income for a certain period of time should the policyholder become critically ill and be unable to return to work. Critical illness policies also come with life insurance payment waivers so you don’t have to worry about your life insurance premium payments while you are in a critically ill state.

Level term life insurance refers to a specific type of life insurance; also often called level term life assurance. The ‘level’ part refers to the fact that the payout is always the same, regardless of when the policy is called upon. ‘Term’ means the policy lasts for a specific period, for example 20 years.

These policies are popular where you only need to be insured until a certain period. This could be for while your children are growing up, or while you are married or with a partner. Basically, it’s handy anytime where you have a beneficiary. If you are single then there is no real point in getting this kind of insurance.

It is sometimes called life assurance as assurance means something that is sure to happen – i.e. your death! But that still doesn’t mean you will die within the period of your policy. So that is why both terms are interchangeable.

As with other types of insurance, the higher the payout you require, the more you will need to pay each month in premiums. You need to make sure your payout is large enough to pay off your debts, as well as leave your dependents enough money to live with.

If you have more health problems, smoke, or are older, then your policy will also be more expensive. You usually need to have given up smoking for at least a year to count as a non-smoker.

Remember to check different brokers and insurers before you get your policy, as you can save a lot of money by going to the right insurer.

Get level term life insurance here.

Life insurance is typically taken out to offer valuable
financial protection for your family in the event of your death,
upon which a payment is made to your financial beneficiaries,
heirs or family members. The extent of this payment will depend
on your insured sum and earnings. Life insurance and life
assurance may be interlinked in advertisements, though bear in
mind the two policies are different. Life assurance is a form of
financial protection which is also an investment, as you should
always get a pay-out at the end of the term of the policy. Life
insurance on the other hand is simply financial protection for
your family, avoiding the issue of debt in the event of your
death.

According to an article by the Fair Investment Company, the
British life insurance industry shrank to almost half the size
of the pensions industry last year and according to the
Association of British Insurers, less than 50% of UK households
hold a life insurance policy.

In their most recent newsletter about this issue, the
Association of British Insurers found that 25% of mortgage
holders had insufficient life insurance to cover their debt. The
ratio of new life insurance policies to new mortgage loans was
apparently 68% in 1994, but by 2004 this had dropped by half to
33%.

The absence of mortgage life coverage poses a serious risk for
the dependants of homeowners. If banks were to embark on wide
scale repossessions as a result of this absence of life
insurance, this would impose a risk on their loan books and
reputations. The Association of British Insurers also state that
one of the main reasons behind the increased gap between
mortgage loans and insurance is the emergence of people
remortgaging their property to take advantage of equity release
through a rise in value, without insuring their borrowing. In
their report it was stated that around 63% of new mortgage loans
were remortgages or further advances, compared to 34% in 1994.
Egg reported at around the same time, that three out of four of
these new loan homeowners had no intention of insuring this
additional debt. This is particularly worrying if couples are
remortgaging their property later in life – towards retirement,
given that should anything happen to the breadwinner, the
partner would be left with significant debts without the
capability of paying the loan back.

Reasons for the downward trend in life insurance take-up include:

* Relaxation in lending policy – increased competition in the
mortgage market means that lenders are not forcing life
insurance policies on their customers

* High house prices have stretched homebuyers, in particular
first time home-buyers, in terms of their mortgage repayments,
that the additional costs of a life insurance policy are deemed
too expensive

* There are more households with no dependents

If you’re interested in researching a life insurance policy,
make sure you shop around. UK websites such as http://www.moneynet.co.uk
provide life insurance and life assurance information guides, as
well as providing price comparison research for the different
products. In the states, the website LowerMyBills.com also
offers a similar service.

Because of the various factors listed above, people have also
become less familiar with the term life insurance and without
the awareness there is little recognition of the importance of
this type of insurance. However as speculation increases that UK
households are not coping with their debt, so should the
awareness of life insurance as an essential product in the
personal finance portfolio.

Planning for your future life can seem like a time consuming burden when you have a young family. After all, where do you find the time in your life to think about things like life assurance while you’re struggling to keep work and home life pressures in check? Our departure from this life though cannot be predicted. You and your partner may live a good life to a ripe old age, or you could pass away tomorrow. If the worst were to happen to you, where would that leave your partner and your dependants? Would they be financially secure for the rest of their life after their loss and not have to worry about paying the mortgage? If not, then a life assurance policy is a must.

Life assurance for life and death

Life assurance, also known as life insurance, is an assurance policy that pays out a lump sum to a named person(s) in the event of your death. This type of assurance policy is inexpensive to maintain, assurance premiums being very low if you take up the assurance policy early in life. Depending on the nature of the assurance policy you may pay assurance premiums up until the end of your life or up until a specified age.

You can also format your assurance policy as a single life policy or as a joint life policy. For married couples with a mortgage and/or dependants, a joint life policy is often the preferred type of assurance to opt for as the assurance policy has the flexibility to pay out on first death or second death. An assurance policy that pays out on first death is beneficial for those carrying a mortgage and where the deceased’s life partner and/or dependants are still alive.

Types of life assurance policies

When considering buying into a life policy you’ll find three basic types of assurance policy available from assurance companies – term assurance, family income assurance and whole life assurance.

Term assurance – Term assurance is a straightforward life policy that pays out a tax-free lump sum upon your death. This is a basic life policy that runs to a specified term, often coinciding with the life of a mortgage.

Family income assurance – This life policy is a set term assurance policy that pays out to dependants should you die during the term of the assurance policy. Pay out is on a regular basis (like an income) until full term of the assurance is reached.

Whole life policy assurance – This is an open-ended assurance policy that pays out a lump sum upon your death, regardless of when you depart this life.

Well, when I was a life assurance salesman, many years ago, I would get asked a variation of this question virtually every day. My answer was always the same. I would reply : “If you knew with absolute certainty the day that you were going to die, how much life cover would you buy the day before?”

The answer from clients was always (and I mean always) “as much as I can get”. As you can imagine, I was a very successful life assurance salesman and earned a good living with this job!

Anyway, my point is that I understand that we all have priorities in life. Putting bread on the table may be more important right now than having life cover. We have our ambitions, our goals and commitments. We tend to think of life assurance as a luxury item rather than a necessity.

Maybe it is the way we have been programmed by our up-bringing or our environment but somewhere along the way, the need to insure against our demise has become a minor factor in how many of us decide to spend our disposable income, rather than an automatic ‘must have’ purchase like bread, deodorant or toilet paper.

Consider this: a man aged 35, with small children can purchase low cost life assurance that will pay out enough to put his children through college or university for about the price of a packet of cigarettes each week.

Put another way, for the price of an average bottle of wine each week, a young mother can buy enough low cost life cover to pay for her children to buy a home of their own or at least get on that all important first rung of the property ladder.

Life assurance, Wills, Retirement Planning, where will it end?! I will let you come to your own, inevitable conclusion on that one. I will just input two words into your thought process: life cycle.

I implore you to consider making a small gamble with the best ‘bookies’ the world has ever known (the insurance companies). I guarantee you that you will never benefit from this sure bet BUT your family, those loved ones that you WILL leave behind, well, they might.

Life assurance is cheap. Pick something you can afford and won’t miss. It will be worth it in either piece of mind or real benefits to your family, a win-win situation for sure. Oh, and ask your financial adviser to donate some of his commission to your kids college fund

Article submitted by Bryan Farrow owner of several websites including a life assurance blog and a blog on personal finance