How to choose a life insurance policy

How to choose a life insurance policy

Share this Article

There has never been a better time to arrange life insurance. A life insurance plan can ensure that your family’s wellbeing is taken care of well after you’re gone. The question is: which is the most appropriate life insurance plan for your particular circumstances? Expert life insurance advice from Acumen Financial Partnership can help you hone in on the right plan for you. Here are just some of the life insurance options available to you.

With so many types of life insurance on offer, finding a policy that’s right for you and your family can be a daunting prospect. From level term life insurance to whole-of-life insurance, decreasing term life insurance and family income benefit life insurance, Acumen’s expert advisers can provide you with tailor-made life insurance advice and a life insurance plan that protects your family’s financial security well into the future.

Choosing a life insurance plan

Securing the right life insurance plan involves calculating how much money you need to protect your dependents, taking into account their living costs and any outstanding debts you might have, such as your mortgage. The cost of your life insurance will depend on your personal circumstances, which is why it is worth bearing the following points in mind when choosing your life insurance policy:

  • Benefits and premiums.
  • Are policy fees built into your premiums?
  • Does the level of benefits decrease or increase?
  • Does the policy have investment or savings built in?
  • How much cash value can you accumulate in the policy?
  • Is it possible to convert a term policy into a whole life policy?
  • Do the new quotes match your insurance needs better than the old policy?

Types of life insurance

There are various different life insurance options available, including level term, decreasing, family income benefit and whole-of-life insurance. There are also other types of insurances that you might like to consider alongside life insurance, such as critical illness, health, income protection, medical and unemployment insurance.

Let’s take a closer look at some of the more common life insurance plans available.

Level term life insurance

A level term life insurance policy lasts for a pre-agreed number of years. If you die during that term, it pays out a set amount. This simple and affordable type of life insurance plan will either cover a fixed debt, like an interest-only mortgage, or a lump sum for your dependants should the worst happen.

Decreasing term life insurance

Also known as mortgage protection, decreasing term life insurance policies last for a pre-agreed number of years, which usually coincides with the length of your mortgage. With the passing of each year, the pay-out decreases in line with your mortgage repayments. This type of life insurance is generally cheaper than a level term life insurance policy.

Family income benefit life insurance

Family income benefit life insurance is similar to level and decreasing life insurance, except that rather than a lump sum it pays out a regular income for the remaining term. By matching this income to your current salary you can ensure your family’s standard of living won’t change dramatically.

Whole-of-life insurance

Whole-of-life insurance policies ensure that, no matter when you die, your loved ones are guaranteed to receive a lump sum payout from your insurer – rather than within a fixed timeframe. This type of life insurance is typically more expensive than shorter-term policies, but is useful for covering funeral expenses and for inheritance tax planning.

Tailored life insurance made in Lancashire

For tailored life insurance advice in Lancashire or the wider North West of England, look no further than Acumen Financial Partnership. Our expert advisers will analyse your situation, help you to identify your priorities, and recommend a tax-efficient life insurance plan that gives you and your family the maximum amount of financial peace of mind.

Protect your family’s future today with tailored life insurance advice from Acumen Financial Partnership. For more information about how life insurance can help your family, or to arrange a meeting with one of our professional advisers, please contact Acumen today on 0151 520 4353 or


Related Articles

  • Life Insurance
    November 25, 2014
    What is Life Insurance and why do I need it?
    Life Insurance, otherwise known as Life Assurance or Term Assurance is a great way to protect your s....
  • Life Insurance
    September 30, 2015
    Life insurance: What is it and why is it important?
    We all know life insurance is probably a good thing to have but how many of us actually really under....
  • Life Insurance
    October 5, 2015
    Finding the right life insurance policy for you
    Life and health insurance protection underpins most good financial planning and these common types o....