Term Assurance

This type of policy provides cover for a fixed term with the sum assured payable only on death. You can choose how long you are covered for - 'The Term'

There are no investment benefits or payments on survival. Premiums are based upon your age, health, sum assurance and term of the policy.

There are several types of term assurance:

Level Term

This offers the same payout throughout the life of the policy so you dependents would receive the same mount whether you died on the first day after taking the policy of or the day before the policy expired. This tends to be used in conjunction with an interest-only mortgage.

Decreasing Term

The cash payout reduce by a fixed amount each year ending up at zero at the end of the term. This cover is often bought to run alongside a repayment mortgage. This type of term assurance is less expensive than a Level Term.

Increasing Term

The potential payout increases by a small amount each year. This can be useful way of protecting your initial sum assured during periods of rising inflation.

Convertible Term

You have the option to convert in the future to another type of life assurance such as a 'Whole of Life' without having to submit any further medical evidence.

Renewable Term

Some Term Assurances are 'renewable' in that on the expiry date, there is an option for you to take out a further term assurance at ordinary rates without providing evidence of your health status, as long as the expiry date is not beyond a set age, after 65. Each subsequent policy will have the same option, provided the expiry date is not beyond the limit set by the life office.

 Critical Illness Cover

Critical Illness cover is a long-term insurance policy designed to pay you a tax free lump sum on the diagnosis of certain life threatening or debilitating (but not necessarily fatal) conditions such as heart attached, stroke, certain types/stages of cancer, multiple sclerosis and loss of limbs. A more comprehensive policy will cover many more serious conditions including loss of sight, permanent loss of hearing and a total and permanent disability that stops you from working.

Income Protection

Formerly known as permanent health insurance, this plan is designed to help protect you, your family and your lifestyle in the event that you cannot work and cope financially due to an illness or accidental injury preventing you from working. Without a regular income, you may find that you would struggle financially even if you were ill for only a short period and could end up using your savings to pay the bills.

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