Long-term insurance ensures that your dependants will be provided for when you die or, in some cases, if you become permanently disabled. It can also provide financial security when you retire. Life insurance ensures that a specified amount of money will be available for settling your debts or looking after dependants after your death. Disability cover is an additional option. Retirement plans offer a large variety of choices for providing for the future, and often include life insurance.
There are different types of life cover
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behind after death, for example to pay estate duty. It is the cheapest form of life cover. The premium is invested by the insurance company. You can borrow against it if you wish.
is similar, but has an investment component. The return on the investment portion depends on the nature of the investment. Because it is influenced by the investment performance, it doesn't guarantee a fixed rate of growth , but the chance of rapid growth makes it a popular choice in spite of this.
during your lifetime rather than your beneficiaries after your death. You can also invest a lump sum in a single premium endowment policy. It is an excellent way to save as specific amount of money for a particular purpose (for example, university fees) and the life insurance portion comes into effect if you die before the policy is due to be paid out. However, there are limitations on the benefits payable in the first five years.