Term Life Insurance is a widely used form of protection in the UK. This is the most basic form of protection you can buy. In the USA the majority of the insurance sold has an investment element to it also, however in the UK this is not the case. The standard term insurance plan will pay a lump sum of money if you were to die during the policy term. If you were not to die during the term then the plan would not be worth any value and the premiums you have paid are in effect wasted. However if you were to die during the term the sum assured you cover yourself for under the plan would be paid into your estate as a tax free lump sum. This can also be placed under trust and this would mean that the payment can go direct to the specified person you would like it to go to and not be part of your estate. Thus giving attractive inheritance tax exclusions.
Posts Tagged ‘life insurance’
Term Life Insurance
Friday, July 10th, 2009Life Insurance
Thursday, July 2nd, 2009Life Insurance is a very popular form of protection insurance. The main reason for its popularity is that it is relatively affordable and offers protection for your family should you die. Many people take life insurance on a decreasing basis; this could be to protect against a mortgage and ensure that should you die, your mortgage would be paid off.
Others may take the insurance to provide family with an income, this would be an ideal form of cover should you be the main bread winner in the family and those left behind are likely to struggle without your income.
Overall it is easy to see the populartiy of this form of protection and it is definately worth considering getting some if you have not got it already.