Term Life
Family income benefit (FIB)
This is a term life that pays regular lump sum, preferably on monthly basis. This option prevents the entire pay out to be made in one instalment with the risk of the fund being misuse for other ends other than to provide for those left behind by the deceased relative.
FIB is cheaper and is the best form of cover for families with young children.
Level term life cover
This type of cover is used for the following:
-A fixed term loan (cover for Interest only mortgage etc)
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Decreasing term life cover
This is a policy suitable for reducing loans such as a repayment mortgage
NB- It’s best to review it because the initial lump sum goes down year-on-year while the
premium remains fixed
A whole life insurance
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A whole life insurance policy provides coverage for the entirety of your life, running until your death.
This type of plan is particularly suitable for:
ï‚· Funeral Cover :
Ensuring that funds are available for funeral expenses. Inheritance Tax Payments : Helping to cover potential inheritance tax
liabilities for your estate.
ï‚· Leaving Money for Loved Ones :
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Providing a financial legacy for your beneficiaries.
However, whole life insurance may not be suitable for young families for the following
reasons:
ï‚· Higher Costs :
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The premiums for whole life policies can be quite high, which may result in a relatively small lump sum for younger policyholders.
ï‚· Long-Term Premium Payments :
Younger policyholders face the burden of paying premiums throughout their lives. If they live a long time, the total cost of premiums could exceed the benefits received from the policy.
Conclusion
These are just a few key points to consider when evaluating a whole life insurance