Smart Insurance is a company that specialises in life insurance products, and it says its aim is to make getting coverage as simple as possible.
Smart Insurance has a couple of different types of life insurance policies to choose from.
Both the Family Life Insurance and the Guaranteed Life Insurance plans will help your loved ones cope financially if you die, but there are some pretty key differences.
This is Smart Insurance’s more comprehensive life cover option. It will pay out a benefit of up to £750,000 in the event that you die – or if you are diagnosed with a terminal illness.
If your heart is set on a Family life insurance plan, you will also have to decide whether you want the price of your premiums to be linked to your age or to stay level throughout.
• Age-based Family Life policy
While the premiums may seem cheap at the outset, they are tied to your age and will gradually increase. On the plus side, as this is a “whole life” policy, you know it will definitely pay out at some point – provided you keep your payments up of course. Another potential advantage over the level premium choice is that your benefit (the amount the policy will pay out) automatically increases each year by 5%.This makes it potentially more resistant to inflation, but the premiums rise accordingly.
• Level Family Life policy
The second form of Family Life policy Smart Insurance offers will charge you a set premium each month. It will stay the same year in, year out. As it’s a “term life” policy, you can only get coverage for between 10 and 40 years, so there’s no guarantee it will pay out. If you’re looking for a more affordable option to protect you while your kids grow up and you pay off your mortgage, this might suit you.
