Life Insurance and Critical illness Insurance

Protecting the Things you Value Most

 

Life Assurance can help protect you against the financial consequences of unexpected events. It is one of the oldest forms of insurance, but now comes in a variety of forms. Essentially a life assurance contract exists between an insurance company and individual(s) where the insurance company pays out in return for premiums paid if the policy holder dies before the end of the contract.

Most people need life insurance but it becomes vital if you have a partner and children. In the tragic event of a death, the remaining partner would have to support the children, and maintain the payment of other overheads such as the mortgage, on a reduced income.

Types of Life Assurance

Level Term Assurance

Level term assurance is a form of life assurance that pays out if the policyholder dies or, as is the case with some plans, on the diagnosis of a terminal illness during the term of the policy. If the policyholder is alive at the end of the term the policy expires and no payment is made. If you stop paying premiums at any stage during the term the policy lapses and has no value. A critical illness option is available at an extra cost, where the sum assured is payable on the conclusive diagnosis of a critical illness. Details of conditions covered are contained within the individual provider's product literature, which you can view online.

Mortgage Protection

Mortgage protection is a form of life assurance designed to cover a capital & interest mortgage, in the event of your premature death, where the sum assured payable decreases in line with your reducing mortgage debt. Some plans also pay out on the diagnosis of a terminal illness during the term of the policy. If the policyholder is alive at the end of the term the policy expires and no payment is made. If you stop paying premiums at any stage during the term, the policy lapses and has no value. A critical illness option is available at an extra cost, where the sum assured is payable on the conclusive diagnosis of a critical illness. Details of conditions covered are contained within the individual provider's product literature, which you can view online.

Critical Illness

Critical Illness policies have arisen as modern medicine has made it possible for people to survive conditions such as cancer or strokes, but not sufficiently for them to return to work. These policies are separate from private medical insurance plans, which pay for treatment in the event of critical illness. A critical illness plan is an insurance policy that pays out a lump sum in the event that you suffer a critical illness such as cancer, a heart attack, multiple sclerosis, or a stroke. Each policy will specify exactly the range of illnesses that it covers.

NOTE: If the policyholder is alive at the end of the term for either level term assurance, mortgage protection, or critical illness the policy expires and no payment is made. If you stop paying premiums at any stage during the term, the policy lapses and has no value.

Waiver of premium can also be included to level term assurance, mortgage protection, or critical illness at an extra cost; this will pay your premiums if you are unable to work for health reasons. All three plans can be taken out on either a single or joint life basis.