What is Term Assurance?
It could be used to pay off any outstanding mortgage loan, or to protect a family’s lifestyle and every day living expenses. Without this valuable protection, your dependants may have no choice but to sell the family home or increase their working hours to afford the household bills.
There are various types of term assurance policies available to help with different needs, circumstances and budget:-
Level Cover
The amount paid remains constant or “level” throughout the term of the policy. This helps in meeting a known liability such as paying of an interest only mortgage, funding a standard of living or paying university fees.
Decreasing Cover
The amount paid decreases throughout the term, usually in line with a decreasing debt such as a repayment mortgage or other long term loan.
Increasing Cover
The amount of cover (as well as the premium) increases each year, automatically, to help protect it’s value against the impact of inflation.
The plan will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.