Find out which type of life insurance is right for you and why it’s a worthwhile investment for everyone.

Life insurance is an investment that grants us peace of mind in a range of scenarios. It protects our loved ones financially and covers any debts we leave in our wake, making life insurance well worth the monthly premium.


If you’re considering taking out a life insurance policy, we’re on hand to help. In this guide we’ll take you through the different types of life insurance; the pros and cons involved; and the main reasons life insurance is a must for everyone. Scroll on to learn more.

The different types of life insurance

Life insurance is an important investment. And, choosing the right policy for your needs is essential. There are lots of different types of life insurance available and the right fit for you will depend entirely on your personal needs.


To help you decide which type of life insurance is best for you, let’s explore the different options on offer.

Joint Life Insurance

If you’re part of a couple, especially if you have children, you may find that joint life insurance is a great option. This type of policy ensures both parties have a mutual financial stake. In the event that one of you dies during the agreed period of cover, a lump sum will be paid out and the policy ends.


We should also mention that this means that the surviving person will no longer be covered. This life insurance option is ideal for couples who only need a single payout. It also tends to be a much more affordable option rather than paying two individual life insurance policy premiums.



  • More affordable premiums

  • One monthly payment


  • One lump sum pay out

  • The surviving person is no longer covered

Decreasing Term Life Insurance

If you’re responsible for mortgage repayments, decreasing term life cover could be the most helpful. A decreasing term life insurance policy generally has the lowest premiums. This type of insurance has been specifically designed to ensure that any outstanding debts are covered should you die while the policy is active.


This means that the amount paid out reduces as the outstanding balance of your financial assets decreases. In simple terms, should you die during the term of your life insurance policy, your mortgage obligations will not be inherited by your survivors.



  • One of the most affordable life insurance options

  • Covers any financial obligations in the event of your death


  • The amount paid out decreases over the duration of the policy

  • It generally only covers your financial debts as opposed to leaving behind a lump sum to your family

Level Term Life Insurance

Level term life insurance policies pay out a fixed lump sum. This type of cover offers a security blanket for a wide variety of people. So, whatever your current status, this is a great option to think about.


Level-term life insurance will ensure that your beneficiaries will receive a specific sum. This sum is decided by yourself and agreed with your insurance provider at the time the policy is taken out.



  • No matter when you die, as long as the policy is active, your survivors will receive a specific lump sum

  • You can decide on the amount at the time of taking out the policy


  • Generally more expensive than other life insurance options

  • Financial needs may change

Increasing Term Life Insurance

Increasing-term life insurance policies offer a lump sum pay out that increases year after year by a fixed amount. The annual increases continue throughout the duration of the policy.


People choosing this type of life insurance generally do so to protect their policy’s value. It helps your policy maintain its worth as the cost of living rises.



  • Ensures your policy maintains it values

  • The payout increases every year through the duration of the policy


  • Generally much more expensive that other options

  • Won’t necessarily increase in line with the rising cost of living, especially in unprecedented circumstances

Whole of Life Insurance

Whole-of-life insurance policies grant life-long cover to the policy holder. This type of insurance guarantees your survivors receive a payout after you die.


This is a popular life insurance option for anyone looking to leave loved ones an inheritance. It can also be a great option for anyone wanting to meet significant family obligations such as mortgage repayments or burial costs.


One thing to be aware of with this type of policy is that if you purchase a whole-of-life insurance policy while in your twenties, you could actually end up paying more into the life insurance policy than it pays out. This type of insurance comes with the priciest premium.



  • Leaves a lump sum in the event of your death, whenever that may be

  • Ensures any remaining financial debts are covered


  • You may end up paying more for the policy than it ultimately pays out

  • Pricey premiums

Do I really need life insurance?

While none of us really like to think about our deaths, it’s really important that we all take the time to think about how it will impact those we leave behind. Whether you’re part of a couple, a single working professional or a stay-at-home parent, there’s a life insurance policy that’s right for you.


In short, life insurance protects your financial assets and ensures any existing debts don’t fall to those you leave behind. It also offers an inheritance payout or help to support your loved ones while grieving their loss. Life insurance is a financial safety net that is well worth the monthly premiums for everyone.

Why secure life insurance with Life Expert

At Life Expert, we deliver quotes from our panel of insurers. We’ll also help you to conduct a full comparison between life insurance options and providers. All of our quotes are personalised and our experts are always on hand to help guide you through the entire process from start to finish.