Beginners Guide to UK Life Insurance. Page 2

A whole of life policy, on the other hand, will suit those of us who want protection for the rest of our days.

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What is the difference between Life Insurance and Life Assurance?: Many people confuse Life Assurance with Life Insurance but there are several big differences between the contracts.
What is the difference between a Guaranteed and Reviewable life insurance policy?: With a “Guaranteed” policy the Life Company guarantees that it will never increase the premium.....
Will my medical history affect my life insurance premium?: Yes it will. When an Life company decides how much to charge you, it works out the statistical chances of you dieing within the term of the proposed policy
Complaints about a Life Insurance Company: If you want to make a complaint to a Life Insurance Company (that is the company which issues your insurance policy), you should write to their Compliance Director.

This kind of life insurance is designed to last until you die - so you'll be covered in the short, medium and long term. A lot of people who opt for this kind of life insurance do so because it can be set up to help with issues such as inheritance planning, although many people simply prefer to get cover that is guaranteed to make a payment at some point so that they feel that they are getting some return on their policy payments. There is a guarantee of payment with a whole of life policy that isn't there with a term policy. Once your term policy is finished that really is it - you are only guaranteed a payment if you do die while the policy is in force.

Many people make their choice here based on their budget. The fact that a term life insurance policy may not ever make a payment (i.e. the fact that you will probably survive your policy) means that insurers can offer lower costs. A whole of life policy - with its guaranteed payment at some point - is consequently more expensive. The choice you make here will be a personal one and may well depend on your financial circumstances. The vital thing to remember is that some form of life insurance cover is vital for most of us - especially if we have a family to consider and we can ( personal loans ) consequently get great protection from either kind of policy at the end of the day.