:: Bank of England Base Rate - 0.5%

:: Average Price of Southwest Property £176,894

source - land registry

Home

Purchasing a Property

Mortgage Guide

Mortgage Glosssary

Conveyancing Guide

Survey Guide

Hips Guide

Insurance Guide

Tradesperson Guide

Useful Checklists

Contact Us

About Us

Low Cost Advertising

insurance guide

Life Insurance (Term Insurance)

Term Insurance is a very simple and straightforward way to provide financial protection for a person’s life in the event of death, over a set period of time. It does not provide any investment element and has no cash in value. It ceases to provide cover either at the end of its term or if a claimable event occurs, ie. the life insured dies and the policy pays out.

On commencement of the policy the life assured will remain covered providing they continue to pay their premium, which is usually payable on a monthly basis. Premiums for this type of cover can be reviewable (they may increase as the life insured gets older) or guaranteed (they will remain constant for the duration of the plan). Depending on the insurance company providing cover, premium rates will differ due to age, whether or not the person to be covered smokes and, possibly, any previous medical history which is declared. Cover can usually be provided for a single life or jointly, which is usually for couples which are financially dependent on each other or business partners.

A term insurance policy can be level (the amount of cover at inception remains the same for the duration of the plan) which is often used to provide life cover for an interest only mortgage or to provide financial protection for a family. Alternatively it may be taken out on a decreasing basis (the initial amount of cover decreases over the term of the plan). This type of policy may be used in connection with a repayment mortgage.

Critical Illness Cover

Critical Illness Cover can either be taken out independently or integrated with a life insurance policy and be on a level or decreasing basis.

The policy is designed to pay out if the person covered under the plan should develop one of the critical illnesses which are covered under the contract. It is important to check the Key Facts Document of the policy along with the policy itself to ensure you’re aware of its definitions of cover and exactly which illness you are covered against. Critical Illness policies may also provide additional cover, such as children’s and terminal illness benefit.

The information provided here is for information purposes only and should not be treated as advice. It is always worth seeking professional financial advice from a suitably qualified expert who is authorised and regulated by The Financial Services Authority.