Life Assurance

What Is Life Insurance?

A term life insurance policy is the most basic form of life insurance and is often an inexpensive way to insure your life. It covers you for a fixed period and pays out a one-off lump sum if the unspeakable happens during the policy term.

With some term insurance policies, you can add additional options, for instance, critical illness cover. If you do add on critical illness cover, the plan will pay out once on diagnosis of a qualifying critical illness or if you pass away during the term of the policy.

Who Is It For?

This type of cover is designed for those who want to leave a lump sum in the event of their death within a specified time whilst keeping the cost to a minimum. Term assurance can protect your family from the financial implications of a personal tragedy and is particularly important if you have young children or dependents. It can be used to cover a mortgage, other loan or to ensure that your family is protected from the effects of having to repay a debt after the main breadwinner has passed away.

The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, the cover will lapse.

 
Level Term Life Insurance

You choose the amount to be paid out, which remains fixed throughout the length of your policy unless you change it. Although it can help cover an interest-only mortgage, your family can use the lump sum however they wish.

Decreasing Term Life Insurance

This policy covers a repayment mortgage, so your cover reduces as your repayment mortgage decreases. Although it’s designed to help repay a capital and interest mortgage, your family can use the decreasing sum as they wish.

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