Home/Finance Directory/Insurance/Life Insurance Life Insurance Life Insurance at Competitive Prices. Compare Top Life Insurance Policies. Many people have a natural aversion to buying life insurance. In fact they hate the whole idea. After all, you only get something for your money if you die -- and then it doesn't do you much good anyway.OK, it's peace of mind you're buying. The assurance that your spouse and children will not have to experience the hardship of losing your income -- or at least have a sum to carry them over for a period of time. And that's good thinking, even if it feels like you're betting against yourself - and that you only win if you lose. Maybe it's best to look at life insurance as a necessary evil - you know deep inside you just have to have some. And, once you decide you need to be covered, it's time to gain an understanding of the pros and cons of various policies, their costs and which is best for you.
The most common form of life assurance is Term Assurance. This is a life insurance policy which covers the life of a person in monetary terms in return fir a payment, usually monthly, and known as a premium. Term Assurance is the cheapest and simplest form of life cover, providing life assurance for a fixed term only. The sum assured is payable only if the life assured dies within that term. There is no investment value to the policy at any time. In the case of Level Term Assurance the sum assured does not change during the term of the policy. Policies are generally used to repay a loan on the death of the borrower (the life assured). Level Term Assurance is most suitable when the loan has a fixed capital value that remains unchanged throughout its term. Decreasing Term Assurance indicated that the sum assured decreases over the term of the policy. This commonly used to protect a capital & interest repayment mortgage, where the outstanding balance reduces during the life of the borrowing. Policies can cover a single life or be on a joint life basis.
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