Product Information

This page is for you, the customer. It helps to explain the following terms used when talking insurance, these terms can often be confusing and misunderstood:

LEVEL TERM INSURANCE
A life assurance policy without investment content. The policy lasts for a specified period, provides a guaranteed lump sum in the event of your death within that period and terminates at the end of that agreed time. This can be arranged on a single life or joint life basis.

MORTGAGE PROTECTION
Similar to level term, however the sum assured reduces over the agreed period. Typically this would be used to protect a repayment mortgage, where the amount borrowed reduces over time.

FAMILY INCOME BENEFIT
These policies are very popular for parents with young children. The policy provides for a regular income in the event of the death of a parent. The policy is designed to provide cover against death during a fixed term and will cease at the end of the term without value.

DEATH BENEFIT ONLY
A payment of a tax free lump sum upon the death of the life assured during the agreed term.

CRITICAL ILLNESS ONLY
A payment of a tax free lump sum on the diagnosis of a qualifying illness, eg Cancer, Heart Attack, Stroke etc.

DEATH OR EARLIER CRITICAL ILLNESS
A payment of a tax free lump sum upon death or diagnosis of a critical illness, of the life assured. The policy pays out on the first event and then ceases.

TERMINAL ILLNESS COVER
A payment of a tax free lump sum in the event the life assured is diagnosed as suffering from a terminal illness.

INCREASING BENEFIT
An option that will increase your benefit on a regular basis, normally in line with inflation, with resulting increase in premium.

WAIVER OF PREMIUM
An option that provides for the insurance company to waive payments of the policy premium in certain circumstances, eg sickness or disability.