Give your family the financial protection they deserve!
Making sure you have the right type of cover that is important to you. Therefore to make it easy we have explained the important things we feel you should know.
Life only and / or Critical illness Cover?
Life Insurance is designed to pay a lump sum to your chosen beneficiary in the event of the assured suffering death. Many policies also payout on diagnosis of a terminal illness. in this case, payment will be made to the life insured. In all instances, the amount paid out by the life company can be paid to anyone the insured chooses and the payment can be used by that person for any purpose.
Critical Illness Cover (CIC) This type of cover is designed to pay the insured a lump sum on diagnosis of a critical illness. Payment is made regardless of whether or not the insured makes a full recovery from the illness. Each life insurance company has a list of illnesses which they consider to be a critical illness and which they will, in normal circumstances, insure against. The life company will agree with the insured which illnesses they are covered against prior to any policy starting and going into force
The list below contains illnesses which are typically covered by these policies...
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Types of Policy
Mortgage Protection Policy
This type of policy is designed to pay off your mortgage in the event of the insured suffering death. The payout is linked to the owed mortgage amount.
Level Term Policy
In the event of a claim, this type of protection provides for the same (level) sum insured to be paid out anytime during the policy term. This type of mortgage is often associated with an interest only mortgage where the debt outstanding normally remains the same until the end of the term.
Decreasing Term Policy
In the event of a claim, this type of protection provides for a reducing (decreasing) sum insured to be paid out during the policy term. At the beginning of the term the sum insured is at its highest. Conversely, at the end of the term the sum insured is at its lowest. This type of policy is associated with a repayment mortgage where the debt outstanding normally reduces over the term until the debt is finally paid off at the end of the mortgage term.
Note - Term assurance policies are pure insurance contracts. There are no investment elements to the policy. This means that there will be no cash surrender value at the end of the term, or if the policy is cancelled early.
