Life Insurance, also known as Term Assurance is a simple, popular and cost effective policy designed to help your loved ones financially in the event of your death.
If you die during the term of the policy, or are diagnosed and eligible to claim for a terminal illness, a lump sum will be paid.
This will depend on the purpose of the cover.
If it is to protect a mortgage then the amount should not be less than the outstanding balance of the mortgage.
If it is to protect family then the amount should be sufficient to “replace you”. This might involve the cost of paying for child care and home help or could be the amount of a partners income if they had to give up work to take care of children.
If the protection is to cover a future liability such as school fees, then the amount should be sufficient to pay the fees and associated costs such as uniforms.
Life Insurance premiums take various factors into account, including your age, your sex, your occupation, whether you smoke, your medical history, the level of cover you need, how long you need the cover for and the type of policy that you choose. For example, the older you are, the higher your premium is likely to be.
If you are seeking joint Life Insurance, to cover yourself and a partner, your partner's personal circumstances will also be taken into consideration when calculating the premium.
Life Insurance premiums start from just £5 a month. Your cover will depend on your individual circumstances and needs. There are no hidden extras. Why not get a quote for online life assurance right now.? Simply use the form on the right to compare the best deals on the market.
No, if the policy covers two people it will only pay out once. This would be when the first of you dies or becomes eligible for Terminal Illness Cover whichever comes first. The policy will end and no further benefits will be payable.
Level Term Assurance is the most basic type of life insurance. For fixed monthly payments, the amount of life cover - also known as the sum assured - is guaranteed for a fixed number of years. The lump sum is paid out if death occurs before the policy ends. The policy may also pay out if you are diagnosed terminally ill during the policy term.
Mortgage / Decreasing Life Insurance With Mortgage Life 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. The reducing life cover means that the cost of this type of policy is lower than that of Level Life Insurance.