Types of term life insurance
Level Term
You are covered for a fixed period and should you die during the policy term you'll receive a lump sum payout. This lump sum is constant throughout the term life insurance policy.
Decreasing Term
Here a lump sum is payable in the event of your death. This lump sum will decrease by a fixed amount during the term reaching zero by the end. This form of cover is suitable for mortages where the capital amount owed reduces every year.
Family Income Benefit
Your loved ones receive a regular income not a lump sum. Income is only paid out for the policy term, so the nearer you get to the end of the policy, the fewer years remain to pay out. It is possible to insure either a single or joint life. With a joint life policy, two lives are insured but payment is only made on the first death |
Enhanced options
Adding other options as below can enhance cover levels, although this may increases premiums.
Critical Illness
If you were to be diagnosed with a critcal illness then you would recieve a lump sum payment. It is possible to reduce premiums by combining critical illness and term insurance as only one payment is made instead of two for seperate policies.
Terminal Illness
If you were diagosed with a terminal illness then you recieve a lump sum payment before death allowing you time to cater for dependent needs. |
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