Critical Illness Protection
Life cover can help protect your family or dependant’s financial security by paying out a cash sum in the event of your death. It can also help protect your mortgage or business.There are different types of insurance available:
- Term Assurance - this is the cheapest and simplest form of assurance. The life office agrees to pay an agreed sum if you die. However, if you survive the term of the policy there is no payout at the end and the policy lapses. The term is set according to the length of the loan you have, e.g. a mortgage term.
- Mortgage Protection – this is designed to repay on death during the term of the mortgage, any outstanding debt on a capital and interest repayment loan. (Another name for this is decreasing term policy)
- Whole of life policy- This is similar to a term assurance, but covers the whole of the life of the policy holder. The benefit paid can be either a lump sum or the value of the invested fund, whichever is higher.
