Term Life Assurance

Term life Assurance is a simple and inexpensive form of life insurance policy that pays out a lump sum (the sum assured) in the event of the death of the policyholder, and is necessary to ensure that your family and dependants will not suffer financially if the worst should happen. Term insurance is usually available on either a single or joint life basis and some plans also have additional benefits such as paying out on the diagnosis of a terminal illness during the term of the policy. If the policyholder or policyholders are alive at the end of the term the policy expires and no payment is made. If you stop paying premiums at any Stage during the term, the policy lapses and has no value. 

There are several types of term Assurance, some of which are detailed below. 

Level term Assurance is designed to pay out a sum of money if the policyholder should die during the term in which your policy runs. When choosing your policy, you should choose the amount you want paying out (the sum insured) and the length of time for which the policy is to cover (the term). The sum assured is guaranteed at the outset and remains unchanged through out the term.

Decreasing term Assurance (often called 'Mortgage Protection') is where the sum assured decreases over the term of the policy. This is commonly used to protect a capital & interest repayment mortgage, where the outstanding balance reduces each year.

Critical Illness Cover. The sum assured is payable on the conclusive diagnosis of a critical illness, such as cancer, a heart attack, multiple sclerosis or a stroke. These policies differ from private medical insurance plans, which pay for treatment in the event of critical illness. Details of conditions covered in most critical illness benefits are listed below, but please use these as a guide only.

Waiver of premium is often available at a small extra cost, this will pay your premiums if you are unable to work for health reasons.

Life Assurance Quote

As you know, price comparison sites offer to search the market for the cheapest life insurance, and we would like to take a moment to explain why some cheap life cover policies may not be the best for you in the long term.

Price comparison sites sometimes list a product called ‘reviewable term assurance’ as one of the cheapest life insurance policies for you.

We can quote for two main types of life assurance, level and decreasing term assurance (for repayment mortgages). Both of which pay a lump sum if you die during the term of the plan. The premium (what you pay monthly/annually) will not normally change during the policy.

However with reviewable term assurance, the premium may increase during the term of the product. This type of policy may be presented as one of the cheapest life insurance policies at the beginning, but it could rise significantly during the term of the policy.

Although a reviewable term assurance policy may seem like one of the best and cheapest life insurance policies at the time, once it has run for a few years it could become less competitive. We can of course offer this if this is what you require.