A Level Term life insurance plan is the most basic form of life insurance and is usually the cost effective way to insure your life. It covers you for a fixed period and pays out a one off lump sum if you die during the policy term.
With some term insurance policies you can add additional options, for instance critical illness cover. If you do add on critical illness cover, the plan will pay out once on diagnosis of a qualifying critical illness or if you die during the term of the policy.
This type of plan is designed for those who want to leave a lump sum in the event of their death within a specified time period whilst keeping the cost to a minimum. Term assurance can protect your family from the financial implications of a personal tragedy and is particularly important if you have young children or dependants. It can be used to cover a mortgage, other loan or to ensure that your family is protected from the effects of having to repay a debt after the main breadwinner has passed away.
A Decreasing Term life insurance plan works alongside the mortgage that you have in place and decreases alongside the mortgage term and amount. It covers you for a fixed period of the mortgage term and pays out a one off lump sum if you die during the policy term.
This type of plan is designed for those who have a mortgage in place and want to protect that mortgage against death or a critical illness.
A Critical Illness plan is designed to pay out a lump sum on the diagnosis of certain specified illnesses. It is often ‘bolted on’ to a life assurance policy as an additional benefit but can also be a standalone plan.
This type of plan is designed for those individuals or families whom want a lump sum if they are diagnosed with a serious illness. As an example of where this lump sum could be used is to repay a loan, mortgage, or perhaps pay for time off work. The lump sum could even be used to pay for any necessary alterations to your home.
The quality of cover and the illnesses covered can vary significantly between different providers. As Independent Financial Advisors we can help you find the plan that best meets your requirements so contact our Protection Adviser to find out more.
An Income Protection plan is designed to pay out a regular income in the event that you are unable to work due to an injury or illness. These types of plans continue to pay out an income as long as you are unable to return to work or up until the end date of the policy (typically your normal retirement age).
This type of plan is quite often seen as the foundation of any financial planning as it is likely that other plans will have to be given up if you do not have sufficient income coming into the household.
This type of plan is designed for anyone whom is working (employed or self-employed). It’s worth pointing out that even if your employer provides sick pay, it is unlikely to last for longer than twelve months and so ongoing protection is essential. Plans can be adapted to fit in with any existing protection you might have. As Independent Financial Advisers we can help you find the plan that best meets your requirements so contact our Protection Adviser to find out more.