Term Assurance from Drewberry Personal insurance brokers.
Making personal insurance simple and affordable
|
|
|||||||
Life insurance also known as term assurance is an established way of financial protecting your loved ones by providing a tax-free cash lump should the worst happen to you.
The level of cover you you require can either remain fixed or reduce throughout the life policy, often being used to cover a mortgage or other financial obligations.
|
Do I need term assurance?
What would be the financial impact on your family if you were to pass away? Would your partner have enough earnings to cover your outstanding financial obligations? If not, life assurance could protect them from financial hardship.
Level or decreasing life cover
Level term assurance is often used as a basic life policy to protect family finances or to cover an interest only mortgage as the level of cover is fixed for the term of the policy.
Decreasing term insurance is often used to protect a principal repayment mortgage loan as the level of cover can decline in line with your outstanding mortgage.
Single or joint life policy
A single life policy is designed to cover a single person. A joint life plan is designed to cover a mortgage or loan which is in joint names.
A joint life term assurance policy covers two lives but will pay out only once, on the first event. Please note if there is a claim on a joint term assurance policy it will automatically terminate, the survivor is no longer covered by the policy.
Guaranteed or reviewable?
Guaranteed premiums ensures your premiums are fixed, they will not increase at any time during the life od the policy.
A policy with reviewable premiums allows the insurer to review the risk of your policy every 2 to 5 years which in turn gives them the right to adjust your premiums according to the risk.
As you would expect, at the outset the premiums for a guaranteed term policy is higher than a reviewable plan however over time guaranteed premiums tend to work out cheaper as the insurer has no right to review your risk and inflate the premiums.
Include a critical illness policy
Adding a critical illness policy to your term assurance financially protects you if you were to be diagnosed with a critical illness such as cancer or a heart attack. Indexation option
An additional option available with a life assurance policy which ensures your cover increases with inflation during the term of the policy. For example £200,000 worth of term assurance cover today, will still be worth £200,000 in real terms at the end of your plan as the amount of cover will increase in line with the retail price index(RPI).
Waiver of premium
Waiver of premium ensures your monthly premiums are covered should you be unable to work an earn an income due to illness or injury. In such times of needs this additional cover provides you with the peace of mind your premiums will be met and you remain covered.
Useful resources
Both the government and associations have produced guides and information on life insurance. The Financial Services Authority Site - Money Made Clear has a number of useful insurance resources. Whilst DirectGov has a useful section for consumers when looking to buy insurance.
|
|||||||
|
need some guidance? |
|||||||
There are a wide range of different types of life insurance products available to suit every need, from cash lump sums to monthly incomes... read more
Life insurance coverage can vary considerably between insurers, get a grasp of the options and key questions to consider when buying life insurance... read more
|
If you are looking for a term assurance policy and need some guidance or just require a personal quote comparing all the market leading life insurance providers then let us know.
Call 0800 612 7897 or email personal@drewberryltd.com
|
|||||||
Also known aslife insurance term assurancelevel term insurance |
||||||||
|
||||||||


