Life Assurance
Once you decide to take on the long term commitment of a mortgage it is imperative that you protect yourself and your family in the event of an untimely death. Most people take out life insurance to provide for their families and alleviate any financial worries at a difficult time.

Level Term Assurance pays a lump sum in the event of death during the term of the policy. There is no investment element within a term assurance contract so at the end of the term there is no maturity value and life cover lapses. The benefit is paid tax free and premiums are usually monthly, and fixed throughout the term. Because the term and benefit are known from the outset, and there is no investment content, term assurance is a very cost-effective method of protection.

Decreasing Term Assurance works similar to Level Term Assurance, but the benefit is set at outset and gradually decreases over the term of the policy. These policies can be used as cover for a repayment mortgage, or other loan where the amount of capital outstanding also decreases over time. Because the benefit reduces over time, the premiums are kept very low.

Family Income Benefit works the same as term assurance but instead of paying a lump sum upon death, it will pay a regular monthly tax free income in the event of death to your dependants up until the end of the term of the policy.

Critical Illness Cover
Critical Illness is usually available as an addition to all term assurance plans but can be bought on a standalone basis.

Critical illness generally allows for the lump sum benefit to be paid also in the event of diagnosis of certain critical illnesses, such as Heart Attack, Stroke, Transplant, Blindness, Total & Permanent Disability and so on.

Most providers conform to the Association of British Insurers standards for qualifying illnesses and it is important that you fully understand the terms of each illness.

Income Protection
Most people who work for a large employer will receive sick pay if they are absent from work due to accident or sickness.

But what if you are self employed or work for a small employer who only offers statutory sick pay? In these instances we would recommend an income protection policy which pays out a tax free monthly amount (to replace your lost income) if you are unable to work due to accident or sickness.

An income protection policy is also sometimes referred to as a Permanent Health Insurance or PHI policy because the monthly payment will continue until you are well enough to return to work, your retirement age or until the policy expiry date. Also because, unlike a term assurance policy, you can claim on this type of policy more than once.