Level Term Assurance
With this type of assurance you only get a payout within the set ‘term’ e.g. 18 years. The payout you receive is also fixed from the start of the term until the end. This guarantees a known lump sum payout upon death within a fixed time e.g. £150,000 if you die within the next 18 years.
Critical Illness Cover – Living Assurance
Although Critical Illness cover is sold by life assurers, there is a big difference when compared with life insurance – you don’t have to die to benefit from the Critical Illness insurance policy. This type of cover is designed to pay out a (tax-free) lump sum in the event of you suffering from certain types of serious illness or if you have to undergo certain types of surgery.
Accident and Sickness Cover
Accident and sickness cover provides a pay out when accidental injury or illness is preventing you from working and being able to pay your mortgage. This cover can run for a set period or until such time as you are fit to begin working again.
Private Medical Insurance
Private medical insurance provides private medical care when you require it. Private care can offer excellent medical standards and vastly reduced waiting times for when illness or injury occurs.
Trust can be used to make sure the payment of a life policy is paid to the person you want the payment to go to and this will prevent the policy being paid out to the deceased estate.
Whole of Life insurance guarantees to pay out in the event of death, whenever it occurs. The premium you pay can also includes an investment element which helps to pay for the cost of cover over time. The cost of cover can be more expensive than term assurance, but there is usually a cash in value too.