Life assurance terms can be confusing. Some of the more common terms are explained below but if you are uncertain about any points please ask one of our independent financial advisers for an explanation

Reviewable or guaranteed premiums Medical disclosure Hazardous activities

Type of premium
Life assurance companies offer policies on either a reviewable or guaranteed premium basis. The insurance company can increase or reduce premiums on reviewable policies, normally at any time, whereas a guaranteed premium policy provides the security that the premium is fixed for the duration of the policy.

Joint life
Life assurance policies can be established on a single owner or joint owner basis. Policies arranged on a joint life basis will pays out the death benefit on the death of the first life, unless the policy is to be used for inheritance tax purposes when it will pay out on the second death. A policy is automatically cancelled once it pays out the death benefit.

Hazardous activities
If you take part in certain hazardous activities you will be required to complete a supplementary questionnaire. Activities include; caving, climbing, diving, motor racing and other extreme sports.

Medical disclosure
In most instances the life assurance company will simply use the medical information disclosed on the application form to make a decision about your life assurance application. For higher levels of cover, or if you have disclosed a previous medical condition, they will normally write to your GP for a copy of your medical notes. If you are applying for a high level of benefit you may be asked to attend a medical examination with an independent doctor. We will advise you of any medical examinations or supplementary hazardous activities questionnaires that might be required.

Non disclosure
Insurance companies regularly investigate claims. If you fail to disclose a fact material to your application, any claim under your policy may be rejected. If you are uncertain whether you should disclose any facts about your health we recommend you include these details on your application form.

Terminal illness benefit
If you have been diagnosed as terminally ill with a life expectancy of less than 12 months the life insurance company will normally pay out the death benefit under the life assurance policy. The policy will then be cancelled and no benefit paid on your death.

Waiver of premium
This is an optional extra benefit that can be added to most life assurance policies. Waiver of premium benefit is designed to pay your premiums if you have been unable to work as a result of illness or injury.

Benefit options
Additional benefits can include increasing cover, renewable and convertible policies. Life assurance can also be arranged on a whole of life basis and can include critical illness benefit and permanent and total disability benefit. New life assurance policies can be placed into a suitable trust. Learn more about trusts.

Alternative options
Critical illness insurance provides protection against serious illnesses such as cancer and heart attack. Obtain an online critical illness quote now.

Whole of life policies do not have set term. Visit our glossary to learn more about the different types of life assurance policy available.

To request a quote
Complete our online life assurance enquiry form or call one of our specialist life assurance advisers to request your free life assurance quote. As an internet based firm of independent financial advisers we provide advice over the telephone, via email and through the post. Dealing with you in this way allows us to discount our commissions to provide you with the lowest priced life assurance quotes.

Help & advice
There are many different options to consider when choosing life assurance and it makes sense to take advice from a qualified specialist who is independent and can offer you products and services from the whole of the market place. Please call one of our independent advisers or contact us to discuss the different options available to you and to request your life assurance quote.