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What is term assurance?
Term assurance provides cover for a fixed term with the sum assured
payable only on death.
There are no investment benefits or payments on
survival.
Term
assurance premiums.
Term assurance premiums are based primarily on the age and health of the life
assured, the sum assured and the policy term. The older the life assured
or the longer the policy term the higher the premium will generally be.
Types of term assurance.
Term assurance policies can be written on a single life, joint life (first or second
death) or on a life of another basis.
You must have a financial interest in the person that you are insuring
when taking out any life of another policy and the provider may require
proof of this before cover is given.
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Level Term Assurance
With level term assurance premiums are fixed for the duration of the insurance term and a payment will
only be made if a death occurs during the insurance period. A Level term
assurance policy is taken out for a
fixed term. This type of term assurance policy can be a useful for providing security for
dependents up to a certain age.
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Decreasing Term Assurance
As the name suggests
with decreasing term assurance, life cover decreases during the insurance term
reducing the cash payout the longer the term runs. Decreasing term assurance
can be useful for those
wishing to secure the payment of a reducing debt (eg a repayment mortgage) if they die during the
term. This type of term assurance is less expensive than level term assurance.
There are several variations of the type of term assurance, please contact us to
find out which type is most suitable for you and your family.
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