Term Assurance is the most basic type of life assurance. With Term Assurance you choose an amount you want to be insured for, and the period for which you want cover. If you die within the term, the policy pays out to your beneficiaries. If you do not die during the term, the policy will end with nothing payable.
There are two main types of term assurance to consider - Level Term Assurance, and Decreasing Term Assurance.
A level Term policy pays out a lump sum if you die within a specified term. The amount you are covered for remains level throughout the policy term. The main features of Level Term Assurance are:
Please note that this type of insurance has no surrender value, and no money is paid out if you survive the policy term.
There are variations to Level Term Assurance, such as Renewable Term Assurance and
Already have Term assurance.
It is always a good idea to regularly review your life cover and make sure it adapts to your changing circumstances and needs. The cost of Term insurance has been coming down in recent years, as the providers compete to get your business, so while you may have the right level of cover, you could be paying to much for it.
Family Income Benefit is a type of decreasing term assurance. Instead of a lump sum being payable, it pays out a regular income which can be monthly, quarterly or annually to your beneficiaries, until the end of the policy term.
The upside to this policy is it is easier to work out how much you need, as if you bring home say, £2000 per month, you can arrange for the same amount to be paid out each month if you die.
Decreasing term assurance is the cheapest form of insurance on the market.
The main features are:
North East Mortgages - Mortgage Brokers and Protection Advisers are 'Whole of Market' advisers, so we can look at all the main providers who are active in this market, and produce you with the most competitive quote.
Please contact us for your free no obligation quotation.