life assurance & critical illness
Life assurance and critical illness are insurance policies that pay out on the event of death or a specified critical illness during the term of the policy. There are various different types of Life insurance available to protect you and your loved ones:
Level Term Assurance - In the event of a claim, this pays out a lump sum during the term of the policy. The amount of cover is fixed from the outset regardless at which point a claim is made.
Decreasing Term Assurance - In the event of a claim, this pays out a lump sum during the term of the policy. The amount payable reduces month on month, usually in line with a repayment mortgage or other loan.
Family Income Benefit - Instead of a lump sum, this would pay out a monthly income during the term of the policy.
Whole of Life - A life assurance policy without an end date to offer peace of mind knowing that your debts and funeral expenses are covered or to provide a lump sum to your loved ones.
Critical Illness insurance is a policy that will pay out in the event of the insured person being diagnosed with one of around 35-40 conditions covered by the policy. All Critical Illness policies have to cover 3 main conditions Cancer, Stroke and Heart Attack, but they typically cover other conditions such as Alzheimers, Blindness, Loss of Limb among others. Definitions vary from provider to provider.
Like life insurance, it’s possible to take the policy out on a level, decreasing or increasing basis. It’s fairly common to have Critical Illness bolted on to a Life Insurance policy.