Life Insurance / Life Assurance
Life assurance is often more commonly known as term assurance. This is because it will run for a specified “term” such as 25 years (such as to protect a mortgage). It is possible to select any term from one year upwards, however, there are some limitations which come into play the nearer one gets to 70 years of age. Life assurance is normally set to provide a lump sum on the death of the person covered by the policy: the life assured. However, it is possible to provide the pay out (sum assured) as income in certain circumstances.
Term assurance is also the cheapest form of life assurance you can buy, and can be used for all sorts of purposes:
- Mortgage protection
- Personal protection
- Family protection
Term assurance policies do not have any investment or “cash in” value at any time. If there has not been a claim made against the policy by the time it expires, then the policy will lapse.
Most insurance companies include terminal illness cover free of charge. This will pay out the sum assured to the policy holder upon diagnosis of a terminal illness during the term of the policy (although not usually during the remaining few months of the term of the policy – it will still pay out on death).
We have tried to give an explanation of all of the options available, however, we will be more than happy to discuss your individual requirements with you.
