What is Term (Assurance) Life cover?
- Term Assurance is designed to provide high value, low cost life cover
throughout a specified term of years.
- As it does not need to provide any savings or investment potential
it is invariably the cheapest method of providing life cover.
How does the Plan work?
- The person setting up the plan must be aged 18 or over. If you set
it up on someone else's life they must be aged 18 or over.
- You simply choose how much cover you need. It can be for any term in
years from five ( one, if premiums are paid annually ) to a maximum of
35, provided you are aged under 80 at the end.
- Terminal Illness Benefit is included free of charge on Plans for terms
of three years or more.
- At the end of the term, the Plan ceases without value and no further
premiums are payable.
What happens on Death?
- On death during the Plan term the Insurance Company will pay out the
Guaranteed Life Cover. The Plan will then end.
- The guaranteed Life Cover will be payable as a Cash Sum.
- Each Plan can be set up jointly with someone else. This is on a First
Death basis, so that the Life Cover is paid out and the plan ends if
one of the lives assured dies during the term.
What if I cancel the Plan?
- You can stop the Plan at any time. However you will not get back any
of the premiums paid or any cash-in value.
What happens if I am diagnosed as terminally ill?
- If the Plan term is three years or more it will automatically include
a Terminal Illness Benefit. Upon receipt of satisfactory evidence this
pays out an amount equal to the Guaranteed Life Cover if it is confirmed
you have a maximum of 12 months to live. The Plan will then end.
- The diagnosis must be made 18 months before the end of the Plan and
you must notify the Insurance Company within three months of the diagnosis.
What will my payments be?
- Your personal illustration will show the payments you need to make
for your chosen amount of Life Cover.
- Your payments will depend on:
- how much Life Cover you need
- how long you want it to last
- your age, sex and whether you smoke or not
- You can pay monthly by credit card authority ( Visa or Mastercard)
or annually by cheque.
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