Introduction

There are so many different types of insurance policies available, it can be difficult to know what you need and why. You may only have a basic idea of what a life insurance policy is, and might be completely unaware that there exist any other kinds of cover at all. Whichever camp you fall into, this article is for you! I’ll outline the main types of insurance policies so that when it’s time for you to buy coverage or renew your existing policy, you’ll know which type is right for your needs.

There is no single size fits all when it comes to insurance.

When you think of the word “insurance”, it’s easy to envision that one type of insurance policy that could cover all your needs. However, there is no single size fits all when it comes to insurance. Just as different people have different needs and priorities in terms of their financial health, so do they have different requirements for their insurance policy.

There are many types of life insurance available on the market today – whole life, term-life and critical illness being some examples. The cost of these policies is based on the risk of you making a claim and will therefore differ depending on what type you choose to take out (for example life insurance is usually cheaper than income protection, as you are more likely to be off work sick than you are to die).

Life Insurance policies can be used in a variety of ways including:

• Insuring your mortgage or other debts (e.g., credit cards) are able to be paid off;
• Providing dependents with additional income in the event that you die early (to replace your lost income);
• Covering funeral costs or inheritance tax; or even
• Giving a pot of money to allow your loved ones to take time to grieve before returning to work, or help with moving home!

Life insurance and critical illness cover are not the same thing.

Most people aren’t entirely clear on the difference between these two policies, but life insurance and critical illness cover are actually very different.

Life insurance pays out a lump sum of money when you die either as a single payment (known as a lump sum), or as regular monthly income to your family. This can be useful as it helps provide financial security for your loved ones after you’ve gone, in order to help them pay for bills, childcare and other expenses.

But what if there’s an illness that means you can’t work? Critical illness insurance is a financial product that pays out a lump sum of money if you are diagnosed with one of a list of serious illnesses (varies depending on provider and type of policy), for example cancer and heart disease.

Families and funerals.

If you’ve ever been to a memorial or funeral, you know how expensive they can be. The cost of dying (funeral, plus professional fees and send off costs) was approximately £9,623 in 2020 according to the SunLife Cost of Dying Report, and a basic funeral cost £4,184. If you had a surprise bill like this come through the post today, would you be able to cover it without issue? The costs can add up quickly and can have a debilitating affect on your family if they have to cover these expenses on their own. Life insurance can help with this by providing financial support for your loved ones in the event of your death.

Life insurance also helps families transition back into their normal lives after a tragedy like a death. Funerals are expensive and take time away from work and school, which could make things difficult financially for some families during the grieving process. Life insurance can help get them back on track so they don’t have to worry about finances while they’re still dealing with loss or trauma.

Finally, life insurance is an important part of estate planning because it can help ensure that loved ones receive something after your passing—whether it’s paying off debt or funding future education costs—and protect them from having to sell assets (like houses) at unfavourable times in order to make ends meet.

Here, I explain how different types of life insurance may help you protect your loved ones at a time they need it most.

In the UK, there are lots of different types of life insurance available to you. This means that there is an option that will work for almost any situation and situation.

Let’s take a look at some of the most popular types:

• Life insurance is a type of insurance that can help provide funds to your family in the event of your death, either as a lump sum or as a regular monthly income.
• Critical illness insurance provides a lump sum payment if you’re diagnosed with a critical illness covered by your policy, ie cancer, heart attack or stroke. You can upgrade your policy to cover more conditions and add your children onto your policy.
• Income protection replaces a portion of your income in the event of an accident or illness that prevents you from working. Unlike critical illness cover, Income protection pays out if you are off work for any medical reason, including mental health! (Subject to your application, as exclusions may be applied based on your medical history)
• Whole of life insurance is a form of permanent life insurance that covers you from cradle to grave—you pay premiums for the entire term of the policy, and as long as you keep paying those premiums, your policy will be active until one of two things happens: 1) You die; 2) You cancel your policy early.
• Private medical insurance is a type of insurance that can give you greater access to medical treatment and diagnosis, covering the costs of being seen privately, rather than having to use the NHS.
• Home Insurance is comprised of 2 parts that protect against fire, flood, theft, storm and a number of other dangers; Buildings insurance which covers the structure of your property (if you have a mortgage this will be a mandatory part of your mortgage agreement), and Contents Insurance which covers your possessions.

Finding the right policy for you.

Choosing the right policy for you can be challenging. There are many different factors to consider when choosing a life insurance policy, but there are also many things that you have no control over. For example, if you’re in good health and don’t smoke or drink excessively, there is a good chance that an underwriter will approve your application for coverage without any problems. However, if your personal medical history shows any signs of heart disease or diabetes then the underwriter may require additional testing before approving any coverage for you.

So what do you do? You find an advisor that understands how important it is for them to get their clients approved for coverage without delay or hassle. They help by offering advice on how best to manage your health so as to improve your chances of being approved by underwriters at the company they represent. Furthermore, they should be able to give advice on finding policies that fit within both your budget and needs as well as those of other family members living under one roof with

Conclusion

As you can see, there are many different types of life insurance available in the UK. Each type has its own unique features and benefits, so it’s important to make sure that you understand what you need from your policy before deciding which one is right for you.

The best way to get your insurance needs sorted is to get in touch with me, an insurance professional with expert knowledge of the industry. I can help you find the right type of insurance for your needs and budget, whether you’re looking for life, home or health insurance.

I offer free consultations with no obligation to proceed. Just book a meeting time that suits you on my diary here: https://calendly.com/kristophercamblin

If you have any questions about my services or this blog post, please don’t hesitate to contact me by phone on 077 0464 9698 or via email at Kristopher@LegacyAdvice.co.uk