Here we will provide some details on life cover, life insurance cover, mortgage protection life insurance and critical illness cover.
People need protection policies for a wide variety of reasons and there are several types of plans to cope with these situations.
In the main, people require life cover or life insurance for their mortgage so that their family and dependants will not be left with a large debt to repay and the possibility of losing the home they enjoy so much. This is also known as death cover.
Families with dependant children will also take out life insurance cover for a lump sum or income to provide for their children in the event of death. This life assurance provides financial support for the surviving parent or guardian so that costs such as child care, school trips, car expenses and further education can be afforded.
The cost of this life cover does not have to be large with appropriate advice and guidance from a financial adviser.
The main types of term assurance and life insurance are:
- Level Term – Premiums and life cover remain level throughout the policy. Can be in single or joint names.
- Mortgage Protection – This is a form of decreasing term assurance. The premium remains constant but the life cover gradually reduces each year. Normally used to protect a capital and interest (repayment) mortgage. Can be in single or joint names.
- Family Income Benefit – These are used to pay a monthly or yearly income in the event of death. Commonly used to provide a widow/er with income to ensure dependent children can be adequately provided for. Can be in single or joint names. Slightly cheaper than level term assurance cover.
- Renewable Term – This plan will allow you to continue cover for a period of time after the initial expiry date. Upon renewal, premiums are calculated on the life assured’s current age but irrespective of health. Can be in single or joint names.
- Convertible Term – This policy allows you to convert to another type of plan with the same insurance company. i.e. whole of life or endowment. Can be in single or joint names.
- Critical Illness Cover – Increasing people are becoming more aware of the value of having critical illness cover in place. Unlike life cover, this benefit pays out once you have been diagnosed with one of the specified illness as listed in the policy.
If you would like to talk with one of our financial advisers about your protection needs then please contact us. We are able to source policies from the best in the market to suit your specific needs.
