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How to Choose the Right Type of Life Insurance for You

type of life insurance

Investing in a life insurance policy is a great way to get peace of mind that your loved ones will be financially provided for when you die. Before you take the plunge however, it's a good idea to consider your personal circumstances and decide which type of policy is the best fit for you.

Below, we have outlined the choices available so that you can choose your cover with confidence.

Whole of Life Cover

This type of policy will pay out whenever you die - no matter what the timeframe. As a lump sum payment is guaranteed at some point, these types of life cover tend to be more expensive.

There are several options to choose from, some of which include investment elements and some which don't. It's best to speak to a Broker before making your choice as they will be able to advise the best option for your circumstances.

Term Insurance

As the name suggests, this type of policy pays out if you die within a specific fixed term. For this reason, it tends to cost less than a Whole of Life Policy.

There are a number of different types of Term Insurance available which all suit different situations. 

Decreasing Term Insurance (or Mortgage Life Insurance)

With this type of policy, both the payments and payout decrease with time. This is a great choice if you want your life insurance to cover your mortgage should you die before it has been fully paid. As your outstanding mortgage balance decreases, so does the amount you need to be insured for.

Family Income Benefit Policy

This is a form of Decreasing Term Insurance which is paid out in the form of a regular monthly income until the policy has expired. 

Rather than helping the beneficiary to pay off the entire mortgage debt, it would help them to cover the monthly payment.

Increasing Term Insurance

Another option to consider is to have your potential pay-out increase each year. You might choose this if you wanted to cover inflation, for example.

With increasing pay-outs you can also expect to pay more than you would with a level term or decreasing term cover.

Renewable Term Insurance

With this type of policy, you can renew at the end of the fixed term, without having to undergo more medical checks.

Not Sure if You Need Life Insurance?

Read our recent blog post to find out!

Endowment Life Insurance

These are basically investment schemes with insurance policies attached. There are a number of options available with varying levels of risk and reward.

Joint Life Insurance

If you have a partner, then choosing a single policy for both of you that pays out when one of you dies can often be cheaper than two separate policies. 

We'd Love to Help!

As with any big financial decision, we would always recommend seeking the advice of an expert.  Here at BB, we can help you to identify the best policy for your specific circumstances and budget. Our years of experience and contacts in the industry have helped us to secure great deals for 100's of our clients - and we'd love to help you too!

To chat with one of our friendly advisers, call 01636 674455 or drop us an email to info@bbmortgages.co.uk. Alternatively, pop your details in the form below and we'll give you a call back.

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Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

2016-03-22T17:24:36+01:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

2016-09-13T12:38:09+01:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

2016-09-13T12:43:22+01:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

2016-09-13T12:48:10+01:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

2016-09-13T12:49:06+01:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.