These policies are designed to provide a tax-free annual income for your family should the insured person die during the term of the plan. The benefit is payable between the date of death and the end of the selected term. Premiums can be paid monthly or annually, and the pay…

Critical illness insurance is a form of protection insurance that can be taken to protect yourself if you were to suffer from an illness that renders you unable to work, or incapacitates you. These are usually defined within the policy. Critical Illness insurance cover is often taken as a combined…

This policy allows clients to effect a term assurance policy for a specified period, at the end of which the client is then given the guaranteed right to effect a similar policy for a similar term, without having to give the insurance company any evidence that he or she is…

Convertible Term Assurance allows the policyholder to change the Term Assurance into either an endowment policy or a whole-life policy, with up to the same amount of cover at any time before the end of the term of the original policy.

In direct contrast to a decreasing term plan, this type of policy pays an amount that increases over the term, thus helping to counteract the effects of inflation on the real value of the benefit payable.

This type of plan is commonly associated with mortgages, and is referred to as ‘Mortgage Protection Insurance’. The amount that it pays out reduces over the term of the policy to reflect the reducing debt under a repayment mortgage. Because of this, premiums are typically lower with this type of…

With level term assurance, the amount of cover stays constant during the term of the plan and there is no investment element. The potential disadvantage is that if you fall ill after the policy expires, you could have difficulty replacing the cover.

Life insurance applications can be made on a joint basis, usually with a spouse or partner. The annual sum is payable on the first or second death of the lives assured within the term of the plan. It is usually recommended that a ‘waiver of contribution benefit’ is included –…

Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees (including salaried Directors). It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds…

Key Person Protection is a life assurance and / or critical illness cover policy taken out to cover the life of a key person within your business. The policy is owned and paid for by the employer, so any pay-out is payable to the employer rather than the key employee.