Also known as Term Assurance this product provides a fixed lump sum
if you should die at any time during the policy term. You can choose
the number of years you wish the policy to run or your age at which
the policy ceases. The premiums you pay can be reviewable (which are
usually cheaper in the short term, but likely to increase) or guaranteed
not to change during the policy term (more expensive initially, but
in the long term, cheaper, as premiums do not increase). You can choose
either level or decreasing cover. Level cover means that the level
of cover is fixed over the plan term and will not reduce. Decreasing
life cover means that the cover reduces over the term of your plan.
If set-up to cover a mortgage, the amount of cover reduces in line
with the capital outstanding on a capital and interest mortgage (repayment
mortgage) and is guaranteed to repay your mortgage in the event of
death, providing interest rates do not rise above 12%.
You can take out this policy on a single life, joint life first death
or life of another basis.
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