How life insurance works, why it matters and the different kinds available

How life insurance works, why it matters and the different kinds available

“Life insurance” is a general term that applies to a range of insurances that protect you – and the people closest to you – in the event something unexpected happens.

Life insurance is best-known for paying compensation to family of the deceased. However there are several different varieties of life insurance.

We offer brief descriptions of some of them on our Life Risk Insurance page. But to help you get your head around them, here we have gone into more detail here about a few of them.

What is Term Life Insurance?

Term Life Insurance is sometimes known as ‘pure’ life insurance or ‘term assurance’. It is designed to protect the financial security of the people who depend most on you.

It insures against loss of life, generally by paying a lump sum to a beneficiary following the death of the policy owner. This occurs if the life insured dies during the term.

Term life insurance is sometimes considered preferable to permanent life insurance, because it is usually significantly cheaper.

What is Disability Income Protection?

Every day accidents occur that restrict people from working, sometimes permanently. In addition to physical consequences, accidents can also be devastating financially.

Disability Income Protection provides income compensation in the event an accident prevents a person from working. People often use this income for purposes such as paying off debs, covering medical bills and week-to-week expenses.

What is Trauma Insurance?

Trauma insurance is sometimes known as ‘recovery insurance’ or ‘critical illness insurance’. A serious illness can make it difficult – or even impossible – for you to continue work. Trauma insurance can provide a financial safety net.

Trauma insurance can apply to serious medicine conditions such as cancer, heart attack, stroke or an accident. All these conditions may not just prevent a person from working but incur significant out-of-pocket treatment costs.

If you would like to take out any of these kinds of life insurance, or any others, please visit this page. To get an insurance quote in the fastest timeframe, online applications are available.

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