|
Types of Protection Available
- Life Assurance policies pay out a lump sum on the death of the policyholder, who will have made regular (monthly) contributions throughout the term of the policy. They can be used to provide protection to the policyholders family or to pay off mortgages and other loans upon his or her death. There are a number of types of life assurance policy:
- Level Term is for a fixed term, contains no investment element and pays a lump sum in the event of death during term of the policy.
- Whole of Life as the name implies provides life cover without imposing a limited term. The level of life cover chosen will be paid out on death of the life assured whenever it occurs, as long as the policy is in force at the time of death. Such policies offer long-term protection, and can be put in a Trust to avoid Inheritance Tax. Because these policies often contain an investment element, the sum assured and premiums my be subject to periodic reviews.
- Convertible Term is similar to level a term assurance policy with one distinct difference. It may be converted into an endowment or whole of life policy regardless of the state of health of the insured. Clearly, this is a valuable facility. Higher premiums are usually paid for this type of life assurance compared with level term assurance.
- Renewable Term allows the policy to be replaced with a new plan at the end of its term, regardless of state of health.
- Critical Illness Assurance is a type of life assurance that pays a cash lump sum on diagnosis at the outset of an illness and/or total and permanent disability, and so can minimise any financial hardship and stress for you or your family.
- Mortgage Repayment Protection can be taken out to cover a building society or bank loan. A life policy can be arranged to repay the loan in the event of the death of the person taking out the mortgage.
- Mortgage Payment Protection can be taken out to cover the repayments of a mortgage or bank loan in the event of the person responsible being unable to make the repayments due to illness or unemployment.
- Family Income Protection can be taken out to protect a partner and/or children in the event of untimely death. In the event of death the policy pays a regular sum or income from the date of death until expiry of the policy term. The contract does not contain any investment element.
- Keyperson or Partnership Protection is life assurance and/or critical illness and/or health insurance to protect surviving business partners or shareholders and directors against the financial implications of a premature death of a key partner or director.
- Income Protection or Permanent Health Insurance replaces income if you suffer a long-term or permanent disability through accident or sickness that prevents you working.
contact us
Site Development by Clear |