Frequently asked questions - Life Insurance

Arranging life insurance cover is usually straightforward. You decide how much cover you need, over how many years you need the cover for, you sign on the dotted line and you pay your monthly premiums. However, there can be many factors that make a difference to the time your life insurance cover takes to arrange and the amount you have to pay. These factors will often come to light either when you first talk to an adviser, or when you complete your life insurance cover application form.

You need to decide

1. How much life insurance you need.




2. How long you want the cover for.




3. What is the right life insurance for you.

Level Term Assurance - fixed premiums for a number of years and a full payout on claim at any point during the term.

Increasing Term Assurance - the cover increases every year without the need for a medical. Not as popular as Level Term, but it should be as people may require additional cover in line with increases in their income and inflation.

Decreasing Term Assurance - the payout reduces over the cover period at a flat fixed rate each year.

Mortgage Protection Assurance - life assurance where the lump sum reduces in line with the outstanding mortgage balance over time.

Renewable Term Assurance - a short term policy and therefore cheaper initially, and commonly used for protecting Company Directors. Importantly, it can be renewed without further medical evidence.

Family Income Benefit Assurance - instead of paying out a lump sum, this type of cover provides a tax-free annual income until the end of the term specified at outset.