Life Assurance


How would your family or business cope financially if you should die early? Life assurance is the answer. It provides financial protection to help your family or business to manage after your death. The peace of mind which life assurance brings helps you to formulate clear plans for the future.

Life Assurance as Protection - Term assurance

Term assurance (also known as "temporary insurance") provides financial protection if you die within a specified period known as "the term". This period might be 10, 15 or 20 years although most Life Assurance Companies will allow you to take cover up to age 70.  If you are alive at the end of the term, no payment is made.

Term assurance is the cheapest form of protection. For just a small amount of money per month your dependants or business colleagues can have the piece of mind that in the event of a premature death their family and business are taken care of. You can also receive tax relief on certain term assurance policies.

There are three main types of term assurance:

  1. Decreasing Term or Mortgage Protection - The sum assured reduces by a fixed amount each year, decreasing to nil at the end of the term. This is the basic and cheapest form of Protection cover available. These policies are usually used to cover a mortgage or other loan and they are designed to pay any outstanding loan repayment if you die early. Remember, though, at the end of the term nothing is payable. The premium remains the same throughout the term.
  2. Increasing Term - The sum assured increases each year by a fixed percentage of the original sum assured. These policies are designed to increase your insurance protection as your earnings increase or against inflation. A lump sum of cover is provided in the event of death.
  3. Family Income Benefit - If you die during the term of the policy a regular income is paid to your dependants for the rest of the term. The income can be paid monthly, quarterly or yearly. Some policies provide an income which increases each year at a fixed rate - say by 3% or 5%.

To talk through these options, at no obligation, please contact us and suggest a good time to contact you.