Life Insurance – The Essentials

Basically life cover pays out a tax-free lump sum if you die during the term of the policy. With life insurance you can choose between Term or Whole of Life Protection.

• Term Life Insurance
  Term Life cover is the most basic type of life insurance. It involves specifying a set number of years cover, which can be single, joint, or dual life cover and you can also opt to include for conversion and indexation.
• Whole of Life Protection
  With whole of life insurance the sum covered is generally maintained for the whole of life, provided the premiums continue to be paid. This type of policy is often associated with estate planning and planning for future inheritance costs.

Deciding how best to Proceed

The cost of life cover is influenced by the choices you make having regard to the above and in particular the following factors.

• How long you want the cover.
• The level of cover you want, and whether you want this cover to increase annually.
• Your age and general health.
• Whether you smoke or not (smokers will be charged more than non- smokers for the same cover).

As your Financial Broker, IPM Draper will be happy to advise you on all the options and their costs to help you select the most suitable plan and requirement for you and your family.