Life Insurance

Life Insurance policy is a contract between the policy owner i.e. the insured and the policy issuer i.e. the insurer. The insurer makes an agreement to pay a certain pre-determined (assured) amount of money in the event of death of the insured. The policy holder (insured) agrees to pay a certain amount of money (premium) at regular intervals to the insurer.

Just like any other type of insurance, UK life insurance policy creates a contract between the insurer and the insured (policy owner) whereby the insurer will pay a stipulated amount to the beneficiary or (beneficiaries) of the policy in the case of occurrence of an insured event covered by the policy.

The insured events that are usually covered in a UK Life insurance policy are:

* Death of the insured

* The insured being diagnosed as terminally ill

* Disability of the insured due to ill health

* The insured being diagnosed as critically ill

* Permanent disability of the insured

* Accidental death of the insured

Many such events are covered as per the terms and conditions of the policy. A UK Life insurance policy is usually presented the form of a legal contract. The policy mentions specific exclusions that limit the liability of the insurer; for example death due to war, suicide, rioting etc.

In UK Life insurance policies can be broadly classified into two major categories:

* Protection – aimed at providing a lump sum payment in the event of occurrence of an insured event

* Investment – aimed at the growth of capital through single or regular premiums

Again there are different types of like UK Life Insurance policies for Protection:

* Temporary (also known as Term Insurance)

* Permanent

* Accidental death

Majority of the companies do not provide life insurance cover for people over the age of 65 years. However some companies do cover people over 70 years of age. The premium that has to be paid by the insured to the insurer varies as per the age, health status, occupation, habits like smoking etc. The life insurance companies charge more premiums for people with a poor medical history.

A life insurance policy is a good way of securing the future of the people dependent on you. It is important to select a good insurance company that charges reasonable premiums and settles the claims quickly. You can go through our reviews section to learn more about the UK Insurance companies.