Life insurance or assurance?
Life insurance policies run for a fixed period of time, such as five, ten or 25 years. This is known as the ‘term’ of your policy. They only pay out if you die during the specified term of the policy.
There are three kinds of term life policies:
- A level policy, which is the simplest option, pays out a lump sum if you die within the specified term of the policy. The level of cover you have remains the same throughout.
- Decreasing. This is most commonly used for mortgage repayments where the amount of the loan decreases over time – therefore the level of cover also decreases proportionately.
- An increasing life insurance policy has an increasing level of cover over the term of the policy, in order to keep up with inflation.
If you are still living at the end of the policy then it doesn’t pay out, and
we can use our experience to identify the cover you need, and can then negotiate premiums at a price you can afford. Bespoke policies can include, but are not limited to: