Types of Life Insurance Cover

Term life insurance or assurance is the cheapest and simplest form of life insurance. It covers you for a fixed period (known as the "term" which you can choose) and pays out a one off lump sum which you can select, if you die during the policy term.

You can add critical illness cover to some insurance plans, which will pay out on the diagnosis of a qualifying critical illness or if you die during the term of the policy. You are covered for as long as you pay the monthly premiums. If you stop paying the premiums, the policy stops.

Premiums depend on a number of factors including the amount of lump sum chosen, the length of term, the applicants age, gender, and if you are a smoker.

There are two popular types of term insurance:

Type One - Level Term Life Insurance

Lump Sum Remains Fixed

Level term life insurance pays out a lump sum on the event of death during the selected term. The lump sum remains constant throughout the period of the life insurance term.

Type Two - Decreasing Term Life Insurance

Covers Mortgage Balance

Decreasing term life insurance which is also known as mortgage life insurance covers you for a set term and pays out a lump sum if you die during the policy term.

Unlike level term insurance where the lump sum remains fixed, with this plan the amount of cover decreases over the term of the policy in line with the amount outstanding on a repayment mortgage.

Although the lump sum decreases over the term with this type of cover the premiums remain the same.

Help and Advice

If you would like some help and advice on the right product for you please complete our quick enquiry form opposite. A qualified life insurance advisor will phone you to discuss the correct plan for your situation, you are under no obligation.

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*Figures are indications of savings only and based on a £100,000 life insurance policy for a female aged 30, non smoker and without a pre-existing medical condition. The rate is based on a 25 year level term policy, sourced on a guaranteed basis. Correct as at September 2017.