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Level Term Assurance.
Level Term Assurance is the most basic type of life assurance. For fixed monthly payments, the amount of life cover - also known as the sum assured - is guaranteed for a fixed term. The lump sum is paid out if death occurs before the policy ends.
Decreasing Term Life Insurance & Mortgage Protection Insurance.
With Mortgage Protection Insurance, also known as Decreasing Term Assurance, you pay a fixed monthly premium but, instead of the life cover remaining level, it gradually reduces over the term of the policy. It is most commonly used together with a repayment mortgage and the sum assured reduces broadly in line with the amount outstanding on the mortgage over the term. The reducing life cover means that the cost of this type of policy is lower than that of Level Term Assurance.
Critical Illness Insurance.
Critical Illness Cover is designed to help protect you financially by paying a lump sum if you suffer from one of a number of specified illnesses - usually including heart attacks, cancer, strokes, major organ transplants, permanent and total disability and other serious diseases. The money can be used for any purpose, for example paying off debts, such as the mortgage; being able to change to a less stressful job without worrying about the drop in income; adapting the house or car to accommodate a wheelchair, or having a good holiday to recuperate. This cover can be provided on a level Term basis or Decreasing (See above for more details)
Family Income Benefit Insurance.
Rather than paying out a lump sum should you die during the selected term, a Family Income Benefit policy pays out a regular tax free income for your dependants for the remainder of the plan term. The amount of income benefit usually remains level over the plan term selected, although you can request that benefits increase in line with inflation as an optional extra. As an example, if you select a £15,000 per annum family income benefit plan over 25 years, and die at the end of year 10, then your dependants will receive £15,000 every year for the remainder of the term I.e. 15 years (£225,000 in total).
Income Protection
Imagine if the foundations to your house were to disappear, what would happen to your house? Answer - It would collapse!
Imagine what would happen to your lifestyle if your income were to disappear, How would you and your family cope?
In the same way your foundations are supporting your home, your income is paying for your whole lifestyle, including your mortgage, holidays, pension plan, life and critical illness insurance. How would you cope financially if you were unable to work long term due to an accident or long term illness?
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