Different types of Insurance
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Level Life Insurance
Life insurance is the most basic of protection products,
it is sometimes know as term assurance. Simply put it
is level life insurance, you chose the cover you require and
of you die within the term of the plan it will pay out the
sum assured. Most life insurance products offer a number of
options such as adding critical illness cover and premiums
protection but the basic product remains the same. Some
plans cover terminal illness if you have less than a year
to live, the plan will only pay out once so if you do claim
for terminal illness or critical illness, the plan will end.
Decreasing Life Insurance
Decreasing life insurance is generally used to pay all or
part of your repayment mortgage if you die or are diagnosed
with a terminal illness during the term of the plan.
It is sometimes know as mortgage life insurance. The
amount that you owe on a repayment mortgage reduces over time,
decreasing life insurance follows suit, with the level of
cover reducing in line with the your outstanding mortgage,
that way you don't pay for more cover than you actually need.
The same as level life insurance many insurance companies
offer a range of options within the package that allow you
to protect your premiums or add critical illness cover to
your plan.
Critical Illness
A critical illness plan will pay a guaranteed lump sum if you are diagnosed with a critical illness defined by the plan during the term of the policy. The money could be used to keep you afloat on a day to day basis, pay regular bills, alterations to your home or for anything else you may need. Critical illness can be taken out by itself but often you can add it to other products such as level term assurance or decreasing term assurance.
Family Income Benefit
Family income benefit can pay out as a lump sum or a guaranteed monthly income if you die during the term of the policy. This means your family would have money coming in on a regular basis. When the plan is arranged you can choose whether your partner or family receive a monthly cash payment, a cash lump sum or a combination of the two.
Income Protection
An income protection plan gives you a monthly income if you are unable to work due to illness or accidental injury. Unlike life insurance, an income protection plan pays out if you are unable to work through most types of illness or accidental injury (check your plan for what is covered). An income protection plan is different from a mortgage payment protection plan as it can help to cover all your outgoings, rather than just your mortgage.
Please contact our team of friendly professionals on 01903
527000 or please use our contact
form for further advice.
