Different types of life insurance

When it comes to life insurance, you’ve got options

The idea behind any type of life insurance is to have the reassurance that you have financial protection in place for you and your loved ones if the worst happens.

It’s the knowledge that in the event of a valid claim, a tax-free lump sum would be paid out to provide the financial help, and breathing space, needed during a difficult time.

There is more than one type of life insurance, so how do you know which policy is right for you?
‘Single life’ policies cover just one person. A ‘joint life’ policy covers two people and when one person on the policy dies, the money is paid out and the policy ends. You will need to decide whether the joint policy pays out on first or second death, as this will determine when the policy ends.

When choosing between these options think about:
Affordability – a joint life policy is usually more affordable than two separate single policies
Cover needs – do you both have the same life insurance needs, or would separate policies with different levels of cover be more appropriate?
Work benefits – if one of you has work ‘death in service’ benefit, you might only need one plan
Health – if your joint policy is with someone in poor health, this may increase your monthly payments