Life Assurance
Life assurance is a type of cover that pays out if you pass away during the policy term. Many modern plans also pay out upon the diagnosis of a terminal illness, which is typically defined as having less than 12 months to live. The proceeds can be paid either as a single cash lump sum or as a regular income for the remainder of the policy’s term.
Duration of cover
- Term assurance: Provides cover for a fixed period, such as 25 years.
- Whole of life: This cover lasts for your entire lifetime and is guaranteed to pay out eventually.
Types of cover
The amount of cover can be structured in different ways.
- Level cover remains the same throughout the policy term.
- Decreasing cover reduces over time and is often used to protect a repayment mortgage. The sum assured is designed to align with your outstanding mortgage balance.
- The level of cover increases each year to help protect the policy's value against inflation.
Premiums
The amount you pay is called a premium. Premiums can be guaranteed, meaning they will not change, or reviewable. The provider periodically reassesses reviewable premiums and may increase over time.
THE PLAN USUALLY WILL CEASE AT THE END OF THE TERM. IF PREMIUMS ARE NOT MAINTAINED, THEN THE COVER WILL LAPSE.
Critical Illness
Helping you avoid the financial impact of a critical illness so you can focus on recovery.
Ready to speak with an adviser?
Request a call back
Gain a clearer understanding of your current circumstances and the options accessible to you by arranging a consultation with an independent financial adviser.
Where we are
HCF Partnership
Ground Floor, 8 Beaumont Gate,
Shenley Hill, Radlett,
Hertfordshire, WD7 7AR
(Open Mon-Fri, 9 am-5 pm)