Term assurance policies represent the simplest form of life cover, for example, charging structure would just include a policy fee. The sum assured is paid out on the death of the life assured during the term of the policy. If a claim does not arise, there is no further benefit from the policy and the contract ceases at the end of its term. The policy has no value if it is discontinued during its term (lapsed) i.e. the policyholder does not pay the premiums when due. Policy duration can be as short as one day or for terms of up to 30 years or more.
Such policies may be used to protect a known and specific liability such as an interest only loan, or to provide cover for dependants. For example, a client who is married with two young children and is the sole breadwinner may be well advised to consider using a term assurance policy to protect the family against loss of income in the event of premature death, particularly if the cost of cover is a major consideration.
Although the word assurance has been used here reflecting the common industry usage, term policies are policies of insurance in that they protect against something which might happen, unlike whole life (or endowments) which provide a payment for something which will happen - death or maturity - and are assurances. There are a number of different types of term assurance, which are considered over the next few sections. It is also usually possible to add critical illness insurance and/or premium waiver to the policies for additional protection. If you want to find out how much family life insurance you may need just give a call for a chat.
Due to advances in medical care, many people may consider the inclusion of critical illness cover as the likelihood of a critical illness claim significantly increases. Critical illness insurance is a benefit that can be either free standing or a "bolt on benefit". Just one call, provides all the support services and advice from what and where to purchase, arranging the right finance and insurances that you need at a price that's right for you.
For more specific help and to talk through you options, call our team of expert advisers today