A form of life insurance where you can choose the amount and period of cover and the amount you pay.
Generally there are 6 types:
Level: Where the level of cover remains constant for the selected term of the plan. The cost of the plan is decided by the amount of cover, the term, your health and lifestyle. The policy can be single or joint life and the benefits are paid tax-free.
Decreasing: Whereby cover declines over the selected term of the plan. The cost of the plan is decided by the amount of cover, the term, your health and lifestyle. The policy can be single or joint life and the benefits are paid tax-free. Commonly used to protect a repayment mortgage.
Increasing: The sum insured increases over the term of the policy, usually at a pre-determined rate ( e.g. inflation or 5%).The cost of the plan is decided by the amount of cover, the term, your health and lifestyle. Premiums may also increase to keep pace with the increases. The policy can be single or joint life and the benefits are paid tax-free.
Convertible: This is a term life policy with the built in guaranteed option to convert to an endowment or whole of life plan during the term of the policy.
Renewable: This is a term policy with the built in guarantee to be able to renew the plan at the end of the term.
Combination: This is where a number of these feature are included in the one plan. For example a RICTA, this is a renewable, increasing or increasable, convertible term assurance policy.
To assess the term policy that is the most effective for your needs and discovers which is the best one on the market ring on 0845-6756749 or clicking here now.
A term policy in which the sum insured is a guaranteed income for the remaining term of the policy following the death of the life assured
(e.g.£20,000 p.a. for 25yrs is worth a total of £500,000. If life assured died after 15 years it would pay out 10yrs at £20,000, a total of £200,000)
It is in effect a decreasing benefit which makes it a relatively cheap option and very useful for families with young children or those planning a family.
Joint and single life policies can be arranged but be aware that a joint life plan only pays out on the first death and double cover is usually much less than double the price. For cost effective family protection ring us on 0845-6756749 or clicking here now.