Life Assurance
'How will I cope?' 'How will we pay the bills?' Are the questions that most widows, and widowers will ask following the death of a spouse, or partner.
If you didn't come home last night, then life assurance, quite simply, would protect the financial security of the people you most care about.
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Life Assurance
There are different types of life assurance, below we have listed a few: -
Level Term Assurance - The most common, competitivley priced the premiums do not change throughout the term of the policy, paying out a cash-lump sum (the sum assured) if you die. If you live to the end of the term though you won't receive a payout.
Increasing Term Assurance - This has a lower sum assured the younger you are, increasing as you get older, as do the premiums. This is mostly used for people who want to protect their future worth as their income increases.
Whole Of Life Cover - This pays a cash lump sum regardless of when you die. There are advantages to this cover, mainly that you will have continuous cover whether you are 25 or 95! The premiums can be fixed so that they stay the same throughout the term.
Family Income Benefit - a variation of level term asurance. An income, rather than a lump sum is paid on death during the term of the policy. The income continues from the date of death for the balance of the policy term. Premiums are usually cheaper for a Family Income Benefit policy than a Level Term Assurance.
Decreasing Term Assurance - also referred to as a Mortage Protection policy. During the term of the policy the amount of cover (the sum assured) reduces in line with the reducing balance of a Repayment Mortgage.
All these policies can be arranged to pay out on either death, or suffering a critical illness (which ever happens first), or making seperate payments in the event of both a critical illness AND a death during the policy term.
And just one warning: -
Answer the medical questions on any application form with full details of ANY, AND ALL, previous health problems. The criticism insurance companies face over policies not paying out on claims could, so very often be avoided by Clients providing more accurate (even more truthful) answers to the questions (they call it 'utmost good faith'!!!).
