glossary of protection products
"A child of five would understand this. Send someone to fetch a child of five"
- Groucho Marx
Level Term Assurance
- Designed to pay a specified sum upon death of the insured within a given term
- The benefit level remains static throughout the policy term
- There is no cash-in value at the end of the term
Decreasing Term Assurance
- Designed to pay a lump sum upon death of the insured within a given term
- The benefit level decreases each year at a specified rate
- There is no cash-in value at the end of the term
Mortgage Protection
- Designed to repay a mortgage loan in the event of death of the insured within a given term
- The benefit level will decrease each year
- There are specified interest rates that the policy does not guarantee against
- There is no cash-in value at the end of the term
Increasing Term Assurance
- Designed to pay a lump sum upon death of the insured within a given term
- The benefit level will increase each year at a specified rate
- There is no cash-in value at the end of the term
Increasable Term Assurance
- Designed to pay a lump sum upon death of the insured within a given term
- The sum assured can be increased at any time without further evidence of health being required
- At the time of increase, your new premium will be based on your age at the time of increase and the new sum assured
- There is no cash-in value at the end of the term
Convertible Term Assurance
- Designed to pay a lump sum upon death of the insured within a given term
- This policy can generally be converted to an endowment or whole of life plan without further evidence of health being required
- At the time of conversion, your new premium will be based on your age at the time of conversion
- There is no cash-in value at the end of the term unless converted
Family Income Benefit
- Designed to pay an income to the insured’s dependants in the event of the death of the insured within a given term
- The income will be paid at a specified rate until the end of the term
- The income can be commuted for a discounted lump sum at the time of death if required
- The premium can be paid as a lump sum or in regular instalments
- There is no cash-in value at the end of the term
Whole of Life
- Designed primarily as a life assurance product to pay out a lump sum in the event of the death of the insured – whenever they die
- Also contains an investment element which can be made available on surrender
- There are a number of product and investment options available
- More expensive than term assurance
- If you are considering a whole of life policy, we feel that it is in your interests to discuss the matter with our Independent Financial Adviser first
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