Level Term Assurance
This type of cover protects you for a given term for a fixed benefit. The amount of life cover chosen at the outset will be paid whether a claim on death is made in the first year of the term or the last year. Quite often a payment would be made on the diagnosis of a terminal illness before the last 18 months of the plan, where you had 12 months or less to live. This type of protection may be suitable for family protection and Interest Only Mortgage debt, where the level of debt on the mortgage does not decrease as the years progress, however, this would depend on individual circumstances and you should seek further advice.
- Provides a lump sum on death or terminal illness to help provide a financial buffer for your family or to pay off debts
- The level of cover remains the same throughout the term of the policy
- The policy pays out if you die during the term of the policy or if, before the last 18 months of the term, you are diagnosed with a terminal illness. (A terminal illness means you are not expected to live for more than 12 months)
- Life insurance policies will only pay out once within the agreed time, so if the policy pays out because of a terminal illness claim, the policy and cover will end
- Paying out on diagnosis of terminal illness may be proportionate to the level of cover under a death claim
Please be aware that in some cases this type of assurance is based on an assessment of the health of the applicant.