Life Insurance
Life Insurance
What is it?
A Term life insurance plan is the most basic form of life insurance and is usually the cheapest way to insure your life. It covers you for a fixed period and pays out a one off lump sum if you die during the policy term.
There are three main types of term assurance to consider – level-term, decreasing-term and increasing-term insurance. Sometimes a combination of the two is the best answer.
Level term: pays out a lump sum if you die within the specified term. The amount you’re covered for remains level throughout the term and are used for interest only mortgages.
Decreasing term: the amount you’re covered for decreases over the term of the policy. These policies are often used to cover a debt that reduces over time, such as a repayment mortgage.
Increasing term: the amount you’re covered for increases over the term of the policy, to keep up with inflation so that your family can make the most of your payment.
With some term insurance policies you can add additional options, for instance critical illness cover. If you do add on critical illness cover, the plan will pay out once on diagnosis of a qualifying critical illness or if you die during the term of the policy.
Who is it for?
This type of plan is designed for those who want to leave a lump sum in the event of their death within a specified time period whilst keeping the cost to a minimum. Term assurance can protect your family from the financial implications of a personal tragedy and is particularly important if you have young children or dependants. It can be used to cover a mortgage, other loan or to ensure that your family is protected from the effects of having to repay a debt after the main breadwinner has passed away. As advisors we can help you find the plan that best meets your requirements.
Please contact us for further information or for us to provide you with an illustration.