Life insurance is becoming more and more popular

with many people now realizing the importance and the

benefits of a good life insurance policy. There are two

main types of popular life insurance, both of which offer a

range of invaluable benefits to consumers. Level Term Life InsuranceLevel term life insurance is the most popular type of life

insurance policy with consumers, and this may be because

it is also the cheapest form of insurance. With level term

insurance, you and your family can enjoy peace of mind at

an affordable price. If you die during the term of this

insurance policy, your family will receive a lump sum

payment, which can help to cover a number of costs as well

as provide some degree of financial security at what will

inevitably be a difficult time. The money could assist with

costs such as:?Mortgage repayments

?Funeral costs

?Education costs for the children

?Day-to-day livingOne of the reasons that level term life insurance is a

fair bit cheaper than other life insurance is because the

insurer only has to make a payment if the insured party

passes away, and even then the insured party has to die

during the term of the policy for the next of kin (or the

named beneficiary) to be eligible for a payout. One of the

great things about levels term insurance is that you can

benefit from cover for just a few pounds each week, and

because the payments remain the same throughout the term of

the policy, you'll never have to worry about rising

payments. The reason why a level term insurance policy is so called

is because the repayment remain level throughout the term

of the policy, so you will never have to worry about the

cost of your policy rising. The policy is also taken over a

fixed term, which is where the 'term' part of the policy

comes in. This means that you can enjoy easy budgeting and

low cost repayments, and you'll know exactly how long you

will be making payment for. On the downside, once the

policy expires you will not be able to reclaim any money

and the policy will be cancelled, so you will then need to

look at taking out alternative life insurance cover. The average term of a level term life insurance policy -

unless otherwise specified - is fifteen years. There are a

variety of factors that contribute to the cost of the

policy such as whether you go for the most basic package or

whether you include a bolt-on such as critical illness

cover, whether you are a smoker, your general health, andthe term over which you take the policy out. Whole Life InsuranceUnlike level term life insurance, whole life cover offers

a guaranteed payout, which to many people makes it better

value for money in the long run. Although the repayments on

this type of cover are more expensive than level term

insurance, the insurer will make pay out whenever the

insured party passes away, so the higher monthly payments

will guarantee a payout at some point. There are a number of different types of whole life

insurance policies, and consumers can select the one that

best fits their needs and their budget. As with other

insurance policies, you can tailor-make your whole life

insurance cover to include additional cover such as

critical illness insurance. The variations on whole life

insurance cover include:Non-profit whole life insurance policies: This is the

simplest form of whole life cover, and enables you to enjoy

the convenience of level payments through the term of the

policy until you die. Upon death, your family received a

payout and the policy becomes null and void. If you want to

pay a little extra, you can take out a policy that is fixed

over a specified term, which means that you will only be

making payments for a certain amount of time, but your

family will still receive a payout when you die. With-profit whole life insurance: This is a cover and

investment type scheme, where your monthly payments are

split between your cover premiums and the investment side

of your policy. You will enjoy a guaranteed assured sum,

and you may find that your insurer adds discretionary

bonuses. Low cost whole life insurance: One of the cheapest

forms of whole life cover, this type of policy features a

decreasing term plan, and the policy is combined with a

profits fund. As bonuses are added to the profit side of

the policy, the policy term decreases. This provides a cost

effective solution for those that want to enjoy the

benefits of whole life insurance cover without having to

make high monthly payments. Unitised whole life insurance policy: When you purchase

this type of whole life cover, you will also be investing

in with-profit units. This means that when the insurer

makes a payout, the sum awarded will be dependant upon the

value of the units in comparison to the value of the death

benefit (the payout will be based upon whichever is the

highest in value). Each month units are cancelled in order

to increase levels of death benefit cover, with reviews

carried out from time to time to ensure adequate levels of

death benefit cover. SummaryBoth level term insurance policies and whole life policies

offer valuable peace of mind to policyholders. The cost of

this type of life cover is a small price to pay for the

peace of mind that comes with being protected, and you can

increase this peace of mind by adding extras such as

critical illness to your policy for just a small extra fee. As a nation, we like to insure just about everything we

can - our cars, our homes, our belongings, our pets, and even

our credit repayments. It therefore makes sense that we

should insure the most important thing of all - our lives. Claire Bowes is a successful freelance writer and owner of

http://www. a1-life-insurance-quotes. co. uk where you will find further information and advice on all aspects of life insurance policies, mortgage protection and critical illness cover.

Author:
Claire Bowes