Whether you are single, married or raising a family you will need some level of protection to cover financial commitments in the event of death.
There are several different types of life assurance:
When you take out a mortgage you will be required by the lender to effect a Mortgage Protection policy. This is a form of life cover which decreases in value over time as your mortgage reduces. In the event of your death the insurance company will pay off the balance owed on the mortgage.
With this particular policy the value of cover stays the same for the duration of the policy. In the event of the death of a policyholder the sum assured of the policy will be paid out in full.
This is the same contract as the level term policy with the added benefit of continuing the policy at the end of the term – without having to do any additional medical examination as long as the amount of cover is not increased.
Whole of Life:
This is a way to arrange life cover without a policy term. The policy will continue until the death benefit is paid providing that you continue to pay the premiums, however most companies will review the policy terms at regular intervals which normally result in an increase in monthly premium at a later stage.
Pension Term Cover:
This is exactly the same as the level and convertible term policies but is suitable for self employed individuals as tax relief can be claimed against the monthly premiums. These policies however cannot be assigned to a bank.