Whether you're looking to provide a financial safety net for your loved ones, moving house or a first time buyer looking to arrange your mortgage life insurance - or simply wanting to add some cover to what you've already got - you'll want to make sure you choose the right type of cover and get a great deal too. Money Matters are independent and search the whole of the market on your behalf.
There are all sorts of products that come under the heading of life assurance and a more relevant heading would be ‘Protection’ , below is a list of the various products available with a brief explanation of each one plus a few commonly used words and phrases associated with protection products.
Level Term Assurance
This is straight forward life cover which pays out a set amount to your estate on death only during the term.
Decreasing Term Assurance
This is also life cover that pays out a decreasing amount on death and is usually used to provide cover for a decreasing debt such as a mortgage and because the cover decreases the cost is normally lower than level term assurance.
Increasing Term Assurance
This is life cover which pays out an increasing amount to your estate on death only during the term.
Renewable Term Assurance
This is life cover which pays out a set amount to your estate on death only during the term however at the end of the term there is an option to renew the cover without any evidence of health.
Convertible Term Assurance
This is life cover which pays out a set amount to your estate on death only during the term. During the original term the plan can be converted to a whole of life or endowment policy without further medical evidence
Whole of Life insurance
A Whole of Life Assurance plan is designed to run for the whole of the insured person’s life; it does not have a term in years. These policies can be used for personal and business situations, and for certain taxation purposes.
Family Income Benefit
Family Income Benefit (FIB) is a form of Decreasing Term Assurance, paying the death benefit in the form of income payments rather than a lump sum. It is a very cost effective way of providing an income for dependants for a defined period.
Critical Illness insurance is designed to provide a lump sum in the event of the diagnosis of a specified serious illness or disability. There is no need for the policyholder to die for the benefit to be paid neither does the money have to be repaid if they survive the illness.
Income Protection Insurance
Previously known as Permanent Health Insurance this is kind of insurance is designed to provide replacement income for people who are working and need continuing income if they are unable to work through long-term disability or illness.
Private Medical Insurance
Private Medical Insurance (PMI) is a pure protection plan designed to provide cover for the cost of private medical treatment, thus eliminating the need to be totally dependent on the NHS.
Long Term Care Insurance
Long Term Care Insurance is designed to cover the cost of long-term nursing care for the sick or elderly – either in a residential home or at their own home.