insure & invest

Term Assurance

Factfile: Term Assurance

Brief Description:

Term Assurance is one of the cheapest forms of life cover available. This is because it is taken out for a specific length of time (the term), for a specific amount of cover and, if the person survives to the end of the term, the policy will end and have no value. There are two main types of Term Assurance, Level Term Assurance and Decreasing Term Assurance (sometimes called Mortgage Protection). There are many variations and additional options to these two basic types of policy.

Regular premiums payable: Yes

Guaranteed Premiums Available: Yes

Reviewable Premiums Available: Yes

Life Insurance included: Yes

Critical Illness Insurance included: Can be added as an option

Income Protection Insurance included: No

Period of Cover:  Fixed Term

Increase Cover option: Yes, normally medical evidence required unless special events such as marriage, new children, further mortgage options included

Decrease Cover option: No

Waiver of Premium option: Yes

Lump sum pay out: Yes

Regular amount pay out: No

Any investment cash in value: No

Tax Benefits:

• Private policies - Benefits are tax free
• Business policies - premiums or benefits are potentially subject to tax incentives, not usually both

Benefits can be put in trust: Yes

Suitable For:

• Children
• Adults
• Family Protection
• Mortgage Protection
• Inheritance Tax Planning
• Business Protection

Insolvency Compensation Limits:

Insurance Company Funds - 90% of total funds invested. No Limit.

Request expert advice today or visit our Money Shop or get a quotation and choose your own policy.