Life Assurance (also known as life assurance or life cover) helps to ensure your dependents are financially protected with a lump sum being paid out on your death. This lump sum can be used to repay outstanding debts, such as your mortgage, or to help replace your income in the event of your death. ). There are different reasons for needing life cover which will determine the type of life insurance policy you select:
Income protection :This type of plan is designed to replace your salary and will provide a tax-free income if you are unable to work through disability. The policy pays a monthly tax-free income until you recover - right up to retirement date if needs be and the payout can be level or set to rise with inflation.
Family income benefit: Rather than providing a lump sum should you die, family income benefit provides a regular, tax-free, monthly income for you and your dependants - from the time of the claim to the end of the plan term.
Critical illness insurance will pay you a tax free lump sum on diagnosis of any one of a wide range of specified illnesses including certain types of cancer, heart attack, stroke, brain tumour and many more.
Diagnosis of such an illness would be a major trauma in your life, but you would still have to meet your financial commitments.
Life cover (non-investment) and income protection - The plan will have no cash in value at any time, and will cease at the end of the term. If premiums are not maintained, then cover will lapse' and 'Critical Illness - The policy may not cover all definitions of a critical illness. For definitions of illnesses covered please refer to the Key Features and Policy Documents