The aim of life protection (or life assurance) cover is to protect you against the unexpected. It will provide money for people who are financially dependent on you. We all need to consider the impact and consequences our death, serious illness, injury or redundancy would have on the people closest to us.
We can look at your lifestyle to tailor a protection package, ensuring your family will be financially secure whatever life throws at you. In our experience helping you to protect the things that are important; your family, your health and your lifestyle will give you peace of mind.
With this type of life insurance policy, you only get a pay-out should you die within the 'term' of your policy. The payout also known as the Sum Assured, is chosen at the start of your policy and can be either on a fixed basis (the pay-out is a fixed amount) or on a decreasing or increasing basis (the payout can either decrease or increase in line with an interest rate or an index) and continues through the term of the policy until the end.
Level Term Assurance guarantees a fixed lump sum to pay out upon death within the term of the policy.
Decreasing or Increasing Term Assurance guarantees a lump sum that either decreases or increases throughout the life of the plan in line with an interest rate or an index. Decreasing Term Assurance and Increasing Term Assurance are very useful to cover the outstanding amount on a Mortgage (Decreasing Term Assurance) or known future increases in wealth to be insured (Increasing Term Assurance).
Family Income Benefit
These policies are intended to meet the needs of parents with (or planning to have) children to offer protection in the event of a parent's death. They provide for an income payable from the date of death until a fixed time in the future (e.g. the youngest child's 18th or 21st birthday).
Whole of Life Assurance
These are policies that provide life assurance for the whole of your life. Whole of Life insurance guarantees to pay out in the event of death, whenever it occurs, generally as long as the premiums are paid. The premium you pay may also include an investment element which helps to pay for the cost of cover over time.
Critical Illness Cover
For many people the financial risks of a serious illness or injury are more important (and likely) than death, as it may lead to loss of work, treatment costs and additional care costs. A critical illness policy will make a lump sum payment on diagnosis of defined “critical” illnesses, serious conditions or injuries. The covered conditions, and level of payment, vary greatly from policy to policy so it is vital to read the terms and conditions of each rather than simply choosing the cheapest.
Income Protection Insurance is designed to pay a regular tax-free monthly income if you are unable to work due to illness or injury, but as defined by the terms of each individual policy.
Income protection plans that have no investment link have no cash in value at any time and will cease at the end of the term. If you stop paying premiums, your cover may end.
Generally, these plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features and policy document, if you go ahead with the plan.