AVIVA have launched a new life insurance advert see below:

Aviva director of protection Richard Verdin says he anticipates a bit of criticism as the firm has gone further than others in pushing the dangers of not protecting yourself and your family.

More people should consider life insurance to be important. It is a useful tool that is beneficial for more than one reason. Over 50 life insurance can be expensive, so do shop around for the most affordable suitable fit for your needs.

For those over 50, such policies can offer different ways to benefit from their use. They could replace income that pays for the cost of your lifestyle, should you choose a whole type of policy. For those with more limited budgets, term policies may be a better alternative. It can provide support needed for survivors and payment of final expenses.

Certain forms can serve as a particularly useful wealth transfer tool, because a single payment can multiply over time, so that its death benefit is much larger than the original payment. Tax advantages other financial vehicles may not provide are another benefit. For instance, in the United States, death benefits are tax-free. Owning this tool means in its disbursement delay and expenses associated with probate are not in issue.

Whole or term insurance policy types are the two basic categories, each having its own subcategories. The basic difference between them is that the latter simply provides life insurance coverage. The term period can extend anywhere between one and thirty years. The other category combines insurance with an investment component. An insured may also borrow against cash value that is built up. If an insured has no financial dependents, cash value may be turned into monthly annuity payments. Basic subcategories of whole coverage are traditional, universal and variable policies.

Premiums in this category tend to be more expensive, because some of the money is put into a savings program. The longer the policy remains in force, the higher cash value it accrues. Whereas, whole premiums stay the same over the years, premiums for term can increase.

The traditional version gives the most guarantees. Its annual premium, minimum cash value and death benefit are all guaranteed. Most policies currently are of the participating variation. This means dividend earnings can be used to increase the cash value and death benefits, decrease the premiums or be refunded in cash. Its universal version offers premium flexibility, especially during the early years. Premiums vary annually and at times could also be skipped. Under it, maximum premiums and minimum cash values and death benefits are also guaranteed. A variable policy may be appeal to a knowledgeable risk accepting investor who likes to select investments. Annual premiums and a minimum death benefit are guaranteed. But, there is no guaranteed cash value.

Term coverage comes in four variations. One allows you to sign up for coverage without a medical exam and has higher premiums as a result. Another form is the level term, which allows you to pay the same premium annually for the full term, with no change in benefits. However, upon renewal rates may increase substantially. Then there is a convertible category which permits conversion into a permanent one at any time. There is no medical exam requirement, but premiums may increase. Fourth category is a decreasing or increasing term policy, which pays out a decreasing or increasing benefit over its scheduled period. Premiums typically remain the same.

Each type of over such coverage has its advantages and disadvantages. You need to carefully consider the long term implications and ensure the policy selected will meet intended needs. Beware purchasing the wrong policy can seriously damage your financial plans.

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