| You may be wondering which life insurance policy | | | | the insured party dies in the 29th year. So long as |
| would suit you best. There are so many options | | | | all the premiums are paid up to date, the full |
| to choose from that it can be a quite daunting | | | | benefit will be paid if death occurs during the |
| task to actually decide on the right one. A broker | | | | term. |
| will explain to you the various products which are | | | | A decreasing term life insurance policy, on the |
| available but it can sometimes be quite confusing | | | | other hand, pays out a decreased amount as the |
| to try and understand the different aspects of | | | | term increases. A lot of people will choose this |
| each type of product. A lot of people only think | | | | product to cover their mortgage payments. A set |
| about insurance when they decide to buy a house | | | | term will be decided upon at the beginning of the |
| and most people have no idea which is the right | | | | policy and if the insured dies within this period then |
| product for them. It would be a good idea to | | | | an amount will be paid out. But unlike the level |
| have some sort of knowledge about some of the | | | | term life insurance cover, the amount paid out will |
| products which are available. Two of the more | | | | decrease each year. For example, if the amount |
| common types of life insurance available are Level | | | | to be paid out in the first year was |
| Term Life Insurance and Decreasing Term Life | | | | £150,000, then the amount in the 29th |
| Insurance. | | | | year may only be around £3,000. Some |
| A level term life insurance policy will set out an | | | | forms of this type of insurance are linked directly |
| amount to be paid out in the event that the | | | | to your mortgage so that if you die at anytime |
| insured person dies during the term. The amount | | | | during the term of your mortgage, the life |
| to be paid out in the event of death will be the | | | | insurance company will pay off the amount |
| same no matter how long into the term the | | | | remaining on your mortgage. The advantage of |
| insured person dies. So if the amount to be paid | | | | this policy is that premiums are lower. |
| out is £150,000 and the term is 30 years, | | | | Always be sure to check exactly what your |
| then the policy will pay out £150,000 if the | | | | policy covers with your insurer. |
| insured party dies in the third year or whether | | | | |