With Life Insurance, you can rest assured that your family will be paid a lump sum in the event of your death. This means your family can focus on themselves instead of worrying about their finances.
It’s a fact of life that we won’t always be around and like most people, you’ve probably thought about how your family will cope emotionally if you’re not there.
Life Insurance is about providing financial security for people who depend on you financially. There are different types depending on your circumstances.
Term Insurance (or Assurance)
This is the most basic and cheapest type of Life Insurance, and is known as term insurance because you choose how long you're covered for, say, 10, 15, or 20 years (the term).
It only pays out if you die within the term you've agreed. If you live longer than the term, you get nothing. The policy can be written on a single or joint basis, with the policy paying out on the first death only during the term.
There are different types of policy you can have:
•Family Income Benefit (a policy which pays out income rather than a lump sum)
•Increasing policy (where cover and premiums rise over the years)
•Decreasing policy (where cover decreases over the years)
•Renewable policy (which lets you extend the original term)
Decreasing term insurance is often linked to a repayment mortgage (where the amount you owe decreases over time) and may, in this instance, be called mortgage term insurance or mortgage protection life insurance.
The premiums you pay are usually fixed for the whole term. There are also contracts where premiums are reviewable after a certain period, usually five years.
Did you know?
You often get Free Cover from the Insurance Company if the cover is to protect a mortgage. This covers you between exchange of contracts (or completion of underwriting if this is later) & completion of your mortgage or the start of the Plan (usually capped at 90 days)
Life Cover For All LLP (Registered in England under company Reg No OC359631) is an Appointed Representative of Access Wealth Management, Station House, Station Road, Wylam, Northumberland, NE41 8HR which is authorised and regulated by the Financial Services Authority