Majority in favour of term insurance
According to the Motley Fool, the financial advice website, an increasing amount of consumers in the UK are opting for term insurance rather than whole of life insurance products.
Whole of life insurance pays out a sum whenever the policyholder dies providing the premiums are paid where as term insurance pays out a lump sum if the policyholder dies within the period of cover.
A spokesperson for Life Direct commented that there are advantages and disadvantages of both products so anyone considering life insurance should seek independent advice to ensure they obtain the product which best suits their circumstances and requirements.
The spokesperson added that many are unaware that they can now get guaranteed premiums on a whole of life policy so consumers can depend on a certain amount of protection against increasing costs.
Life Direct concluded that life insurance is about peace of mind and the problem with a term policy is that ultimately that policy is going to stop working for you. When the term expires, many find they are uninsurable because they are in poor health or too old.