Life Protection

Level Term Assurance With Critical Illness Cover (Optional)

Level term is a type of life insurance that is designed to pay out a lump sum to a person's family if the worst does happen and the covered person passes away.

The optional critical illness cover is designed to pay a lump sum in the event that the policyholder is diagnosed with a serious medical condition which is specified in the policy. Examples of the types of illnesses which may be covered can be found in the documents given by insurance companies.

Insurance which is based on an assessment of the health of the applicant is unlikely to cover the applicant for previous or existing medical conditions please refer to policy documentation and seek advice in order to understand what the policy does and does not cover before making an application.

Decreasing Term Assurance and Optional Critical Illness Cover

This is a life insurance policy which is designed to pay out a lump sum and/or income in the event of the death of policyholder and that the amount of the lump sum steadily decrease to zero throughout the term.

Decreasing Term Assurance is often used as a mortgage protection policy because, as the amount of capital to be paid on a repayment mortgage decreases, less insurance is required to repay the balance in the event of the death of the borrower, therefore a decreasing term policy may be suitable and is usually less expensive than a level term policy.

The optional critical illness cover is designed to pay out a lump sum in the event that the policyholder is diagnosed with a serious medical condition which is specifed in the policy. Examples of the types of illnesses which may be covered can be found in the documents given by insurance companies. Critical illness taken as an option in a combined decreasing term life insurance would usually also be on a decreasing basis.

Insurance which is based on an assessment of the health of the applicant is unlikely to cover the applicant for previous or existing medical conditions please refer to policy documentation and seek advice in order to understand what the policy does and does not cover before making an application.

Whole of Life Protection

Whole of life protection plans are life assurance contracts that are designed to give you a specified amount of life cover for the whole of your life.  This is called the Guaranteed Death Sum Assured and will be paid out if there is only one life assured, on the death of that life.  If there are two lives assured on the plan then the sum assured could be paid out on either the first death or the second death depending on the option which has been chosen at the outset.

It can be set up, if it is covering two people as a joint life first death plan.  This means that it will only pay the sum assured after the death of the first life assured.  This will mean the plan will have ceased and there will be no more benefits or premiums payable.  As an alternative you can set up a joint life second death plan which obviously expire after the deaths of both lives assured.  This type is usually used for Inheritance Tax purposes.

The Whole of life plan is available to anyone aged 18 to 84 and will continue until the death of the life assured.  It can be taken out for someone under the age of 18, but no younger than 16, but this must then be taken out in trust by someone over the age of 18.  The amount payable is decided by the life assured, and this determines the premium amount.

Whole of life policies have an investment element which means that the level of the sum assured or the premium may vary during the term of the policy.

Further Information

If you require any further information on any of the products mentioned on this page then please don't hesitate to contact us by filling out the form below and we will try to contact you as soon as possible.