Insurance Policy Today

How to Buy Whole Life Insurance

What is whole life insurance? Life insurance, as the term suggests is insurance where the life of a person is insured rather than anything tangible. There are different types of life insurance policies and one of them is whole life insurance. This is a type of policy where the person who is insured agrees to a set of rules that are laid by the insurance company regarding the premium and the duration of the insurance.

The premium will remain fixed throughout the course of the insurance. Once the period of the insurance ends, you will be able to renew it and extend the period but in most cases, the monthly premium will increase with each renewal. Before you buy a whole life insurance, you need to make sure that it will suit you. There are many things that you have to consider before buying this type of policy.

Death benefit will be provided by the company on the death of the person. When buying such a policy, it is best that you do a lot of survey. This will make sure that you will land on the policy that will be best for you.

Steps for buying a whole life insurance policy

There are many things that you have to follow in order to get the best whole life insurance policy. A few of them are listed below:

The first thing that you need to do is to make sure whether you need such insurance or not. This is crucial because the clauses of this insurance are different from the usual ones.
Take a look at the different types of policies that are available with different insurance companies. Compare all of them and make a list of the ones that you feel is best for you.
Search on the web for details of polices that constitute the list that you have prepared. Try getting opinions of existing customers of these polices.
See whether discounts are available on a certain policy. There are many companies that offer discounts provided that you satisfy certain criteria put forward by the company.
Note down the policies that offer you affordable premiums. This is important since the premiums usually increase with time. So, it is important that you get a whole life insurance with a low initial premium.
After following all the above steps, you need to choose the one that you feel will be able to serve you your requirements.

Things that you need to take care of

There are many things that you need to take care of when going for a whole life insurance. The first thing you need to remember is that you will have to pay the premium until you die. You have to make sure that you will be able to pay it. Otherwise the policy will cease. Another thing that you need to note is that the premium that you will have to pay will increase as your age increases. So you need to ensure that you will have enough money to pay as each year passes.

Things to Keep In Mind When Comparing Life Insurance Rates

Life insurance is essential to get if you want to keep your family safe and secured after you are no more in this life. You should focus on purchasing the right and adequate policy after comparing some of the life insurance rates of different companies so that you get the best possible policy at best possible rates.

Today there are so many of the companies that are willing to provide you the excellent services and best policies. It is sometimes difficult to choose about with which one to go to get the best deal. It has been seen that each company has its own terms and conditions.

Each of these companies offers you something unique and different from others. And also each of the insurance companies offers you various policies according to your needs and requirements. So which one to choose and with which one you should go for. This is really a difficult task. Here are some of the things to keep in mind when comparing various life insurance rates.

First of all you need to have the list of some top companies that are reliable and popular. Make a list of the companies that you think can give you best possible services at lower rates. If you are not sure about many companies try out comparing at least 5 of the top ones. See and compare what are the unique things they offer than others.
Now look at their websites and get more information about them. Find various reviews and testimonials they may be having at their site which makes you confirm about the credibility of the company.
Then you should ask for the quotes from the companies that you are choosing. Compare the rates you get from these companies for the particular product you want to choose. After getting the quotes from the interested companies it is much easier for you to choose the best one that suits your needs.
After these entire if you are still in the position of dilemma you should hire an insurance agent that can help you to compare various companies and life insurance rates they give. Insurance agent can help you get the best deal that is most suitable for you after getting the essential information from you.
You should tell your insurance agent about the companies that you are interested in. they can also help you to apply for the best insurance and can suggest you the possible ways by which you can get the attractive discounts on your life insurance coverage.
While getting the life insurance rates you should also consider the needs of your family in future. You should not consider taking a cheap loan that is not worth your money and time and may not prove useful for your family.

Life coverage is a must have for all. If you have not taken it yet you should get it now so as to keep you and your family secured and risk free. A better consideration is to be taken while getting the life insurance rates so that you do not get the insurance that is too expensive or too cheap.

Term vs. Whole Life Insurance – Choose the Right Plan for Your Needs

Life insurance is a need for today’s individuals. It is necessary because you do not have the control on your life or death and there can be a moment when there is no one to take care of your family when you are no more in this world. It is therefore important that you take the life insurance plan that is best for you as soon as possible.

Choosing the right plan for you and your family is very important. Many of the people confuse between the two forms of insurance that are term and whole life insurance. If you have not taken any insurance yet you should have a look at these two and choose the best for you that can serve your purposes well.

Term vs. Whole Life Insurance

Not many people know the main difference between these two forms of plan. But simply speaking term life insurance is much cheaper as compared to the whole life insurance. You can get the cheap life insurance if you choose the term insurance. While choosing this type of plan you need to pay very small amount of premium each month.

While considering between terms vs. whole life insurance plans you should know what actually you want to have. If you have the low budget and cannot afford the high premiums you should at least go for taking term insurance plan where you will get the risk cover and the beneficiaries get the substantial payouts at time when policy holder is no more.

Whole life insurance also gives you this benefit. But the basic difference between terms vs. whole life insurance is the whole life insurance offers you the large payout even when the policy holder is not dead. You can easily use your life insurance plan as a way of saving your money and getting the whole lot of cash lump payouts at the time of retirement or when the policy gets matured.

Drawbacks of having Term Life Insurance

Term life insurance is highly in demand. More and more people take this because it is cheap to get and you can get the risk covered at the lowest premium rates for your family. With the small monthly premium you can get the lots of benefits for your family.

But the main drawback of getting the term life insurance is that you do not get anything at the time of retirement and at time when the policy gets over. This gives you the benefit for your family members after your death. Whereas on the other hand whole life insurance plan or universal life insurance will give you best coverage and provide you the cash when your policy gets matured even when the policy holder is alive.

Term life insurance plan is one of the oldest forms of insurance plan which people use today also. Whole life insurance is newer form of insurance plan that is quite attractive and profitable. If you are looking for the really cheap plan you can consider taking a term plan or else you can get a whole life insurance plan and enjoy the greater benefits.

Online Life Insurance Quotes – Easy and Quick Technique to Get Life Insurance Quotes

In the modern world, there is no limit to the possibility of a danger occurring and you may be harmed and the chances are high that a person might get killed in the process. To make sure that the beloved ones of the person have a smooth life, it is important that he or she is insured. Getting a life insurance makes sure that the family of the deceased will be financially backed up and will be able to start over after the catastrophe. They will be able to cover the funeral expenses and there will be a lot left to move on with life.

When you buy a life insurance, it is very important that you do a bit of survey and find the very best insurance policy, one that suits you the best and will be friendly to your pocket. Nowadays, there are many insurance companies that offer online life insurance. The basic things, buying the policy and everything remain the same. The only difference is that you will be doing the process of buying the insurance on the web.

Tips on buying online life insurance

There are many procedures that you have to perform when getting an online life insurance. Here are few tips on finding what you want.

Visit a website that specialises in searching insurance products. Nowadays, there are many search engines that is optimised for finding insurance policies. Use it to have quick glance at the most popular policies.
When searching for life insurance quotes on the web, it is best that you use search terms like “buy life insurance online”, ”life insurance quotes online”. These terms will get you search results that are the best.
Have a quick glance of the search results. Choose the ones at the top. Most results will direct you to the website of various insurance companies. There will be many life insurance policies available. You have to note down the policies that you feel will suit you. After that you need to read the offer document of polices carefully and patiently to find the product that will be able to cater to your needs.
Make sure to check the credentials of the insurance company since there can be many bogus websites too.
After you read through the offer documents, you will be able to pin out the policy that is best for you.
Go to various review sites to get the review of those polices. Consider the feedback of the customer and the reviewers before making your choice.

Advantages of online life insurance

The major advantages of online life insurance are:

When you go for online life insurance, you will have access to many products. This means that you will have a wider choice and the probability of finding the right life insurance policy is high.
The payment is done online and therefore, you can do it from the comfort of your house at anytime.
You need not struggle with any paper work.
Online life insurance approval is faster than the offline process.

Life Insurance Tax

Life Insurance Tax can vary dependent on which country it is that the Life Insurance Policy is taken out in. Below is a brief guide to Life Insurance Tax in the USA and the UK. What you must remember is that times and tax change so for up to date information it is best to speak to a Financial or Legal Adviser. The below is a brief outline in relation to simple Life term Insurance tax and is not in any way advice.

Life Insurance Tax in the UK

Premiums that are paid on a Life Insurance Policy are not usually allowable against income or corporation tax, however policies which are qualifying for tax purposes that were issued prior to 14 March 1984 do still attract Life Assurance Premium Relief at 15%, the net figure is what the customer pays.

Non-investment life policies are usually not subject to either income tax or capital gains tax upon a claim. If the policy includes an investment element for example an endowment policy then the tax treatment is determined by the qualifying status of the policy.

The qualifying status is determined at the outset of the policy if the contract meets certain criteria. Essentially, long term contracts plans that run for more than 10 years) tend to be qualifying policies and the proceeds are free from income and capital gains tax.

The proceeds of a life policy will be included in the estate for inheritance tax purposes, except that policies which are written in trust may fall outside of the estate. Trust law and taxation of trusts can be complicated, so any individual intending to use trusts for tax planning would usually seek professional advice from an Financial or Legal Adviser.

Life Insurance Tax in the USA

Premiums paid by the policy owner are usually not deductible for federal and state income tax purposes.

Monies paid by the insurer following the death of the insured are not included in gross income for federal and state income tax purposes but if the proceeds are included in the 'estate' of the dead life insured, it is likely they will be subject to federal and state estate inheritance tax.

The tax ramifications of life insurance are complex. The policy owner would be well advised to carefully consider them. As always, the US Congress or the state legislatures can change the tax laws at any time.

How much life insurance do I need?

Asking yourself 'How much do Life Insurance do I need?' is a very important question when calculating your insurance requirements. It is something that is unique to every single consumer. The amount that you apply for may be questioned by the Life Insurance provider that you are applying to, so it needs to be a realistic and justifiable amount.

Most insurance websites will have some sort of Life Insurance Calculator to assist you in ascertaining a sum assured that is right for you. The idea is to enter a number of variables in order to find out an approximate amount of Life Insurance cover that is right for you.

An insurance calculator will look a little something like this:

Existing Life Insurance cover in place and any capital or savings - $....
Current and future educational costs for your children - $....
Outstanding mortgage and loans - $....
Further outstanding debts - $....
Funeral costs - $....
A lump sum to keep your family accustomed to the lifestyle that you currently provide, basically replacement of income that is usually advised to be around ten times your annual salary - $....
The answers to the above 6 questions will be used to calculate the amount of Life Insurance that you require.

An example is as follows:

1. $20,000
2. $30,000
3. $100,000
4. $10,000
5. $1,000
6. $300,000

A life insurance calculator with the above details input into it will answer the question 'How much Life Insurance do I need?' with a figure of around $420,000 which takes into consideration inflation rates for future years.

For a thorough breakdown of your family's unique insurance requirements it is best to speak to a financial adviser or broker who will be able to offer free independent advice. They will be happy to answer the question 'How much Life Insurance do I need?'. Alternatively if you feel that you are comfortable obtaining cover yourself visit an insurer on-line, application processes for Life Term Insurance are very straightforward. For a breakdown of all of the information that will be required of you when making an application for Life Term Insurance please see our Life Insurance Questions page.

Cheap Auto Insurance - Why You Need to Compare Auto Quotes

If you are shopping for affordable car insurance, it is important that you take the time to compare auto insurance rates from the top auto insurance companies. By comparing the rates offered by different car insurance companies, you will be able to locate the policies with the lowest monthly premiums. To get started on your quest to find the cheapest car insurance quotes, simply enter your Zip Code in the box above. You will then be presented with cheap car insurance rates from several companies where you will be able to compare auto insurance rates.

Compare Auto Quotes

In order to find cheap auto insurance, you need to compare insurance quotes from a variety of insurance companies. Each insurance company will provide you with a different quote as each company as their own criteria for which they judge a motorist. If you do not take the time to see what type of premiums every major auto insurance company offers you, you could end up paying much more than you should for your car insurance policy.

Also, when you compare auto insurance quotes, you will easily be able to see which policy is right for you. Analyzing different insurance policies side by side makes it easy for you to spot the differences in each policy’s coverage. If there is a certain type of coverage you want to be included in your auto insurance policy, you can ensure it is listed in your quote before you agree to purchase the policy.

Reasons to Search for Car Insurance Quotes Online

While you could research all of your car insurance options in person by visiting a branch of each of the major auto insurance companies in person, this would really just be a waste of your time. The best car insurance comparison method is to search on the Internet. Most of the top auto insurance companies offer free online car insurance quotes, which makes it extremely easy to see what type of premiums you can expect to qualify for.

No longer do you need to spend countless hours speaking to an insurance agent on the phone or driving to your local branch office to get a car insurance quote. Now, you can log onto the Internet can receive a quote in a matter of minutes. Simply fill out the short online form and you will receive your quote nearly instantly.

When you are researching various auto insurance policies online, you will be able to compare and contrast each of the policies to see which one is right for you and your family. This will make it easy for you to make sure certain levels of coverage are included in the policies that you are examining while obtaining your free online quotes.

Tips to Help Lower your Insurance Premiums

If you are shopping for car insurance on a budget, here are a few tips you can use to help lower your auto insurance premiums.

Purchase low-profile car – If you are in the market for a new vehicle and shopping for auto insurance at the same time, consider buying a low-profile car. This includes vehicles that are not the target of thieve, easy to repair and possess a terrific safety record. By purchasing a reliable, sensible vehicle, you can receive various discounts when it comes to your auto insurance premiums.

Carpool as often as possible – Most auto insurance companies provide discounts for low-mileage drivers. If you can prove that you carpool to work or do not drive your vehicle a lot, you may qualify for a low-mileage discount. In order to see if you qualify for one of these discounts, you will need to contact your car insurance company directly.

Buy a car with safety gear – Purchasing a car with a good safety record is a great way to lower your insurance premiums. Ensuring that your vehicle is equipped with air bags, automatic seat belts, anti-lock breaks, and daytime running lights will allow you to qualify for safety discounts through your car insurance company. Also, installing an alarm system in your vehicle can help you receive additional safety discounts as your vehicle will be less of a liability for the insurance company.

Combine insurance policies with one company – If you have more than one vehicle, it is best to insurance them with the same company. Most insurance companies offer multi-plan discounts, which can save you a good deal of money. Also, taking out homeowners’ and life insurance plans with the same company can help further reduce your monthly insurance premiums.

Opt for the lowest possible medical coverage – If you currently have a quality health insurance plan through your employer, there is no need to opt for additional medical coverage through your auto insurance policy. Opting for the lowest possible medical coverage required by your state of residence will reduce your monthly premium, allowing you to save a few extra bucks each month.

Search for teen discounts – If you have a teen driver in your household, place them on your auto insurance policy rather than getting them their own. Teens who have good grades and a spotless driving record can qualify for discount auto insurance rates. By placing your teen driver on your insurance policy, you can reap the benefits of this discount by have more than one auto insurance policy with the same company for your household.

Auto insurance is a necessary evil that everyone has to deal with. Taking the time to research all of your car insurance options by seeking multiple online car insurance quotes will help you locate the cheapest car insurance rates possible. Once you have found an affordable auto insurance policy, you can utilize some other tactics to lower your insurance premiums even further.

Life Critical Illness Cover

Life Term Insurance can be taken out with the option of being a Life Critical Illness cover policy. This means that it is possible that a claim can be made on the policy for an occurrence other than just the death of a life assured.

Critical Illness cover in short is insurance against the life insured being diagnosed with one of a number of Critical Illnesses named by the insurer. As on death a pre-determined lump sum is paid out but this time in the event that one of the specified Critical Illnesses is diagnosed.

Insurer do not list exactly the same Critical Illnesses and it is vital to check exactly which illness is covered before you take out a policy.

There are two types of Critical Illness cover and this is integrated Life Critical Illness Cover and stand alone Critical Illness cover.
Integrated Critical Illness cover is as simple as a Life Term Insurance Policy which has a single sum assured for both Life and Critical Illness cover. For example a single sum assured of $40,000 which will be paid upon the first occurrence of the death of a life assured or the diagnosis of one of the named Critical Illnesses. This is simply a Life Critical Illness policy and once a claim is made the policy is finished.

Alternatively some insurers will offer the option of stand alone Critical Illness cover. Stand alone Critical Illness cover can be for instance a Life Term Insurance Policy with a sum assured of $40,000 on death and $35,000 in the event of being diagnosed with a Critical Illness, so in theory the contract is 2 policies in one as there are two separate sum assureds.

There is a variation to stand alone Critical Illness cover which is where there is no Life cover and the policy is designed specifically to pay out in the event of one of the named Critical Illnesses being diagnosed.

On a Life Critical Illness cover application there will be additional questions asked by the insurer specifically for this additional option.

Life Critical Illness cover can be quite a complex contract and it is always best to read the company's literature on the policy before committing to any cover as this will explain any possible restrictions and their specific terms and conditions. All such literature is always available directly from insurer's websites.

Why take out Life Critical Illness Cover?
If you are diagnosed with a Critical Illness then it is probable that your lifestyle will change for good. Upon diagnosis you may not be able to look after yourself in the same way if, at all, in the future. Life Critical Illness Cover not only provides valuable Life Insurance but also provides financial help should you need to adapt to a change of lifestyle due to a Critical Illness.

The benefits of Life Critical Illness cover is that you can afford to pay for the following:

Private Medical Treatment
Alterations to your home if they are needed in order to cope with your change of lifestyle, such as a stair lift
The purchase of medical equipment that may be specific to your illness, this could include a kidney dialysis machine
To repay your mortgage in full as you will likely be unable to go out to work and continue to earn
Home care

Is there a separate Critical Illness Premium?
You will only be charged one Life Insurance Premium per policy but on any quotation that you receive you will see that the Critical Illness Premium is shown as a portion of the total premium. Obviously having Critical Illness cover with your policy will make for a higher premium because of the added benefit.

It is possible that the insurer will offer the option of having a 'Guaranteed Critical Illness Premium' or a 'Reviewable Critical Illness Premium'. The Guaranteed Critical Illness Premium is just that and will remain the same throughout the term of the policy. The Reviewable Critical Illness Premium will mean that periodically, for example every 5 years, the premium will be reviewed and following the review you could be offered a revised premium. The rates at the time of the review are the deciding factor and naturally this could mean a higher or lower premium.

As with a regular Life Term Insurance Policy, cover will only remain in place as long as you keep up to date with your Life Critical Illness cover premiums. The plan will at no time accumulate any value.

Life Insurance Underwriting

Life Insurance Underwriting is not something that will apply to everybody that makes an application for a Life Term Insurance Policy. If you are of average age, height, weight and have little or no medical history yourself or in your family, you will more than likely be offered standard acceptance terms and a Life Insurance Premium straight away to match what you were originally quoted.

Life Insurance Underwriting is the process that takes place if your application shows that you present more of a risk to the insurer than the average person.

For clarity's sake, each and every person insured pays a Life Insurance Premium into a huge pool of money and when claims are made the proceeds come from this pool. The insurer needs to ascertain how much of a risk to the pool each new person presents and the Life Insurance Premium is charged accordingly. If somebody is a higher risk to the pool then they will have to pay more than the people that present little or no risk. So the purpose of Life Insurance Underwriting is to determine how much of a risk these people present and then offer them acceptance terms and a Life Insurance Premium that is fair to the entire pool of money and the people that pay into it.

The Life Insurance Underwriting process is as follows:

Application is made on-line, over the phone, with a broker/adviser by you the consumer.
Application is submitted to the Insurance Company.
The answers to each question is assessed and anybody with any answers determined as 'non-standard' will be referred to the insurer's Life Insurance Underwriting department.
A Life Insurance Underwriter will then look at the application and decide whether on the information provided they can still offer standard acceptance terms or if with the information provided they can offer non-standard acceptance terms.

If they feel that they need further information then it is possible that they will do one or more of the following:

Contact you and ask you personally about your answer to questions on your application
Send you a questionnaire applicable to specific medical conditions, pastimes or in relation to your occupation
Request that you go for a medical examination or take a number of other medical tests, such as a test to see whether you have smoked within the last 12 months
Send you a questionnaire in relation to your finances
Approach your doctor for medical records or clarification on any matters
It is their job to collate as much information as possible in order to offer the correct terms that are fair to both you and every other person within the pool.

Following their assessment of all of the information they can proceed to either issue you with standard acceptance terms, non-standard acceptance terms, decline your application or in some scenarios defer your application.

Non-standard acceptance terms

These can differ in a variety of ways, such as:
The outcome of the Life Insurance Underwriting may be that the premium is increased, this is often referred to as a 'rating' or 'loading' for reasons that they will be specific about
Certain exclusions can be placed upon the policy, for example if you have a dangerous occupation then no claim can be made for death to do with the occupation, of if you have a family history of a certain medical condition it may be that an exclusion is put in place so if you were to die from this condition a claim could not be made.
The amount of Life Insurance Cover could be restricted to a certain amount.

Life Insurance Underwriting Decision to defer
If you are at present suffering from a certain condition and awaiting further medical investigations or an operation or you are awaiting the results of one of these then the decision may be to defer you until more conclusive information is available to the Life Insurance Underwriter.

Having your application declined
The worst case scenario is that your application is declined. This will only happen if you present a risk to the insurer that they are unable to accept or if through the underwriting process they discover that you were not truthful on your application.

If from reading this you are considering applying for a Life Term Assurance Policy and you think that it is likely that your policy will need to be underwritten then it is wise to apply early as the process can often take several weeks.

Life Insurance Premiums

Generally Life Insurance Premiums will remain the same throughout the entire policy. This is what is known as a 'Level Premium'.

You will choose before the Life Term Insurance Policy begins the frequency that you pay the premiums, the options commonly available are:

* Monthly
* Quarterly
* Annually

Payments are usually required via direct debit or cheque.

The factors that are taken into consideration when calculating the initial or base Life Insurance Premium are as follows:

The amount of Life Term Insurance Cover that is being applied for
The gender of the life assured/lives assured
The age of the life assured/lives assured
Smoking habits of the life assured/lives assured
The occupation of the life assured/lives assured
The lifestyle of the life assured/lives assured
The insurers administrative charges
The medical history of the life assured/lives assured

It is possible that the premium can be increased if the policy needs to be medically underwritten, this can be for anything from a life assured being overweight to having a family history of cancer or from being a recreational drug user to having a dangerous occupation such as deep sea fisherman!
For further information please see our Life Term Insurance Underwriting page.

In simple terms each and every person insured pays a Life Insurance Premium into a huge pool of money and when claims are made the proceeds come from this pool. The insurer needs to ascertain how much of a risk to the pool each new person presents and the Life Insurance Premium is charged accordingly. If somebody is a higher risk to the pool then they will have to pay more than the people that present little or no risk.

Obtaining a quote for a Life Term Insurance Policy is straight forward and can be done by visiting any major insurer, insurance comparison website or by speaking to a financial adviser/broker.

Types of Life Term Insurance Policy

There are several variations to the basic Level Life Term Insurance policy available in the market at the moment. It is true to say that some types of Life Term Insurance Policy are by far less popular but considering everybody's needs when it comes to insurance are different it is well worth educating yourself on all of the options that are available to you.

As we know the factors of Life Term Insurance policies in general are as follows:

It pays a lump sum on death of the life assured
There is no element of savings or investment
Applicant decides the amount of time(term) that the policy is to run for
Applicant decides the amount of life insurance that they are covered for
If the life assured dies during the term the sum assured is paid out
There are no benefits upon cancellation or at the end of the term when the policy expires
There is a high level of cover for a relatively small premium
On this page we will provide you with a basic breakdown of how each Life Term Insurance Policy varies.

Level Life Term Insurance Policy
A Level Life Term Insurance Policy is the most popular type of Life Term Insurance. The applicant chooses a sum assured and how long the policy is to run for. The sum assured remains the same throughout the whole policy as does the premium. All of the above factors apply to this contract.

Decreasing Life Term Insurance Policy
This is the second most popular type of Life Term Insurance Policy and is the cheapest. It is also referred to as Mortgage Protection Insurance. A Decreasing Life Term Insurance policy is designed to cover repayment mortgages and any other form of repayment loan. The sum assured periodically reduces throughout the term of the policy but the premium remains level all the way through. This is why it is the cheapest form of Life Term Insurance Policy. All of the above factors apply to this contract.

Increasable Life Term Insurance Policy
An Increasable Life Term Insurance Policy is also available from some insurers. This policy will provide for the sum assured to be increased at regular intervals. Further evidence of health is not required when the sum insured is increased. Due to the sum insured being able to be increased the insurer will charge a higher premium. If at such intervals the sum insured is increased then the premiums will also increase accordingly. The policy is designed to protect against inflation. All of the above factors apply to this contract.

Convertible Life Term Insurance Policy
A Convertible Life Term Insurance Policy will begin as a Level Life Term Insurance Policy. At the end of the policy, providing it is still in force and no claim has been made of course, there is the option to convert the policy into a Whole of Life Policy. The sum assured remains the same throughout the life of the policy. If it is converted the insurer will likely restrict the amount of cover on the new policy to the level it was running at originally. The initial Level Life Term Insurance Policy will have all of the above factors applying to it but when the policy is converted to a Whole of Life Policy it may only have factors 1,3,4,5 and 7 applicable.

Renewable Life Term Insurance Policy
This is usually a short term Level Life Insurance Policy which can be renewed by either 3 or 5 years come the end of the policy. At the renewal point no further medical evidence is sought by the insurer. However when the policy is renewed the Life Insurance rates applicable at that time can make for a higher premium for the renewed term. All of the above factors apply.

Family Income Benefit Policy
A Family Income Benefit Policy is a form of Decreasing Life Term Insurance Policy which is intended to replace lost income. In the event of the death of the life assured a series of regular payments are made until the end of the term. A lump sum can be taken instead of regular payments, however this amount will likely be less if the regular payment option had been selected.