Brief Explanation of Protection Products

LIFE INSURANCE - Term Assurance Cover

Term Assurance gives you financial protection if you die within a specified period known as the term. If you are alive at the end of the term no payments are made.

A Level Term Assurance policy will pay out if you die within the specified term. The amount of cover, known as the Sum Assured, will remain the same throughout the term of the policy.

A Level Term Assurance will pay off the mortgage figure on death. Since none of the capital is being repaid during the mortgage term the sum assured remains constant at the level of the mortgage amount and for the mortgage period. cheap morgages.

A Decreasing Term Assurance is a policy, which is designed to cover a repayment mortgage for the mortgage term. The original sum assured reduces in line with the outstanding mortgage amount.

Critical Illness Cover is now generally available as an additional benefit with Endowment and Repayment linked mortgages. The policy proceeds are payable in full on the diagnosis of one of the listed illnesses, (i.e. the policyholder does not have to die). This cover has grown immensely popular in recent years, as in the event of a successful claim, the mortgage would be repaid in full at the time of the claim, depending on the sum assured.

Income Protection cover is also available. This will pay you a regular monthly income after a specified deferment period if you are off work due to sickness or accident. You may claim as many times as you like up to the specified terminating age. Normally cover is provided for the amount of monthly mortgage payment.

Accident, Sickness and Redundancy Cover is available to protect your monthly mortgage payments in the event of you suffering any of these occurrences. Cover is only supplied for a limited period and insurers are not obliged to offer renewal of the policy after a claim has been made. In these circumstances consideration should be given to an income protection policy covering sickness and accident policy, which cannot be cancelled by the insurer once it is effected.