Life Assurance

- Term Assurance

- Critical Illness

- Family Income Benefit

Term Assurance:

Term assurance pays a tax free lump sum in the event of death during a specified period in return for a fixed monthly premium. At the end of the term if no claim has been made the policy finishes and there is no maturity value. There are 2 types, level and decreasing. Level term assurance provides a fixed amount of cover for the term of the policy. Decreasing term assurance, or as it is sometimes referred to mortgage protection the cover reduces broadly in line with a repayment mortgage.

Critical Illness:

Critical illness can be taken out as a standalone policy or as an optional extra under a level or decreasing term assurance plan. Critical illness insurance will pay you a tax free lump sum on diagnosis of any one of a wide range of specified illnesses. These include certain types of cancer, heart attack, stroke, brain tumor plus many other conditions. Typically a critical illness policy will cover upward of 23 specified illnesses. The conditions covered can vary between different providers.

Family Income Benefit:

Family income benefit is another form of term assurance. It will pay a regular tax free income in the event of death for the remainder of the term of the plan. This benefit is often used to replace income rather than pay off mortgages, loans etc.