Types of Life Insurance cover

Fixed Term Life Cover
Mortgage Life Cover

Fixed Term Life Cover

This is a very basic simple protection policy.

This policy will ensure a specified amount of money is paid out if a death occurs or a terminal illness is diagnosed within a specific period.

It really is as simple as that - no complications, just a simple basic protection policy. The amount of life cover remains fixed throughout the term of the policy and even if death were to occur on the last day of the policy, the full amount would still be paid out.

Mortgage Life Cover

Unlike the Fixed Term policy, this is a decreasing protection policy.

This is where the level of cover reduces at a steady rate each year at roughly the same rate as the outstanding balance on a repayment mortgage - hence it is therefore frequently used as "mortgage protection".

Provided the initial sum assured and term are the same as the mortgage as at the outset, it means that in the event of death or the diagnosis of a terminal illness, the policy payout should be sufficient for dependants to repay the loan, provided that the interest rates have not risen above 12%.

General policy information applying to both policies

Minimum age to take out a policy is 18 next birthday

Maximum age to start a policy is 65 next birthday

Minimum term is 5 years

Maximum period of cover is up to age 70 next birthday

Minimum sum assured:
-up to age 40 - £30,000
-over age 40 - £20,000

Maximum sum assured - £2 million

The premium is fixed at the outset and remains exactly the same throughout the policy term

Both pay out in the event of death or on diagnosis of a terminal illness (not to be confused with critical illness)

Both policies can be written in trust if required

Both policies can be taken out on a single life or joint life first death basis

Premium payment is by monthly direct debit only

Once guaranteed terms have been offered, confirmation can be faxed to your solicitor or lender if a mortgage is involved

There is no surrender value or cash-back at the end of the policy term - it merely expires

Available to UK residents only.

Standard terms and conditions apply.