11 2019

What Are Your Options for Life Insurance in Surrey?

by admin

If you have finally decided to have the dreaded discussion, and trust us, we know no one likes talking about the passing of a loved one, you may be wondering what types of coverage options are available to you. Generally, there are two categories of life insurance – term and permanent– and both have several subcategories. Let’s cover the basics of the two main types of insurance policies:

Term Life Insurance in Surrey

Term life insurance is a contract between you and the insurer which has a pre-determined end date. Terms for these types of insurance contracts are customizable depending on your needs, but typical terms are 1, 5, 10, 20 or 30 years. Like any type of insurance, with a term insurance policy you are paying the insurer a premium in return death benefit coverage, payable to your beneficiary, should you pass away within the coverage period. If the coverage period expires with no claim, you are not entitled a refund of the premiums paid, however you may have the option to renew or convert the plan into a permanent policy (at a higher premium). This type of life insurance policy is often right for individuals who only require temporary coverage, like in cases of families with young children or when purchasing a home with a mortgage. Premiums are typically lower for this type or product than with permanent insurance.

Permanent Life Insurance in Surrey

Permanent life insurance, on the other hand, has no set expiration date; upon the passing of the policy holder, the pre-determined benefit amount will automatically be paid to the beneficiary. In addition to having no expiration date, as long as premiums are paid, most permanent insurance policies have level premiums guaranteed in the initial contract, saving you from uncertainty. And, unlike temporary insurance contracts that have no cash value after expiration, permanent life insurance allows for a cash value component to accumulate, which can be withdrawn or borrowed against. As one might expect, permanent insurance policiesare significantly more expensive than temporary policies. Permanent insurance policies are the right choice for individuals who want to ensure that their beneficiary receives a death benefit upon their passing. This amount could be to pay off existing debt, cover a mortgage amount, or to provide funds for a financially dependent loved one to live on.

Within each category of life insurance there are several subcategories, the best way to know which product is right for you is to speak with an insurance broker.