North East Mortgages - Mortgage Brokers & Protection Advisers
North East Mortgages - Mortgage Brokers & Protection Advisers

Term Assurance

 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.

Level 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:

  • Policy can be set up on an Own Life / Joint Life first death / Life of another basis.
  • Premiums are guaranteed to remain the same throughout the policy term.
  • Terminal illness benefit is included as part of the standard policy.
  • Cover can include Critical illness cover for an increase in your premium.
  • If Critical illness cover is taken as an option, there is a choice between guaranteed and reviewable premiums.

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

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.

Term Assurance for Business Protection

The main features are:

  • A policy designed to pay out a cash lump sum if a Business would be unable to trade in the event of a Director, Partner or Key person falling terminally ill, or dying.
  • Can be used to cover a Business loan.
  • Premiums are guaranteed throughout the policy term.
  • Cover can be increased during the policy term without any further underwriting. Terms and conditions apply.

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.

North East Mortgages
31 Prensgarth Way  
South Shields

NE34 9HD

Telephone: 0191 4899291

Mobile:       07887 882755




Use our online contact form.

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