Term life is an option for you when you are trying to determine which type of life insurance policy is right for you. You only pay on a term policy for a set amount of time and then you will need to renew in order to receive the benefits. The other option in coverage is a set policy, which you pay into and have essentially purchased as a way of protecting your family in the event of your death.

In order to make a decision you need to look at your own situation and your age. If you are older, you should more likely to go with the term option. This is because you are less likely to outlive the policy and your spouse will be able to reap the benefits of the payout. Then you will be able take care of those left behind for a lower rate. Clearly no one can predict when you will die, so you will unfortunately be guessing if you were to go this route.

Another option is a traditional life Insurance policy. With this, you will know that your policy is worth a certain amount of money in a certain number of years. The policy itself will not need to be renewed and your family will reap the rewards. The problem with this type of policy is that you need to pay into it every year. In essence, it is never paid off until you no longer require it or are dead.

No matter which option you do choose you will need to make sure it is the one that makes the most sense for you and your family. You do not want to keep paying on something if you have enough money and all your finances are taken care of. However, you do not want to lose all of the money you have already paid into a policy and then reap no rewards for it. This is where you get into a pickle and need to make a choice as to what will allow you to feel good about the condition in which you leave your family.

In order to make the right decision about what to do, you cannot make it on your own. You will need to involve your family and quite possibly your attorney in this decision. That way you will have all of the input you will need and will be able to make a decision you trust, which will ensure that your family feels comfortable with the decision you made about the policy.

Consider all of the different options you will have when it comes to term life and traditional life insurance. It’s a big choice to make, and you will need to decide not only on the type of policy, but also when and how long you want it for. These are tough decisions that can lead to much stress and discontent among family members that you do not want to deal with. So no matter what you decide, make sure it is what you feel comfortable with and know will work best for you and your family. This article is like your guide to life insurance helping you out in choosing a better life insurance.

As a general rule it is better to avoid products that combine insurance and investment. If what you need is a sensible amount of life cover, then simple term assurance is likely to offer best value. If you want to build up some capital for your dependents you could, for example, invest in funds held in a tax-efficient individual savings account (ISA) and take out a decreasing term assurance plan to provide a lump sum if you die early before your fund has had a chance to build up.

The premium you pay for your insurance will depend on your age, sex and state of health, among other factors. You have a duty to complete the proposal form honestly and accurately. If you are considerably overweight or you smoke, your premiums may be ‘loaded’ – in other words you pay more because there is a greater chance of an early death. Certain dangerous sports will also raise eyebrows in the underwriting department and in turn may raise your premiums. In some cases your policy may not cover you while you indulge in these activities.

The proposal form will also ask if you have ever been tested for HIV (AIDS). If you are a single man and want a substantial amount of cover, you will probably be requested to complete a ‘lifestyle’ questionnaire which is designed to discover whether your private life exposes you to a higher than average risk of AIDS or other sexual diseases.

The medical

Both men and women who want to take out a large amount of cover should expect to be asked to undergo a medical examination. Despite the aversion most people have to this, it does actually work in your favor. Where policies are not fully medically underwritten (this is usually the case with policies sold by direct mail or through off-the-page advertising), the underwriters assume there will be a much greater incidence of claims so the premiums may be much higher than a medically underwritten contract.

The premium will also depend on the company. Life assurance is a very competitive

Market, which is why independent advice is essential. These days a good adviser will have access to a comprehensive database that will enable him or her to select the right features and the best rates available at any given time.

Your adviser should also make sure your premium rate is guaranteed. The cheapest rates are often offered by companies that reserve the right to ‘review’ premiums at any time. With reviewable premiums, effectively you are writing the insurance company a blank cheque. On your end you can compare life assurance comparison online as well. This way you make sure that you get the best from your insurance with paying too much for it.