Once you have identified that you need life assurance, whether it is for family protection or to cover your mortgage, there are a number of policies available to you.

We have explained the various options available to you and provided answers to commonly asked questions all designed to help you find the right policy.

Mortgage Protection
Used in conjunction with a repayment type mortgage, a mortgage protection policy provides life assurance that reduces in line with the mortgage debt. The initial level of life assurance should be the same as the mortgage, and the term of the policy consistent with the term of the mortgage.

The monthly cost of a mortgage protection policy is normally fixed and guaranteed throughout the term of the policy. In the event of death the policy pays out a one off lump sum that is used to repay the mortgage. There is no savings element to a mortgage protection policy and at the end of the term the policy simply expires without value.

Level Term Assurance
Used in conjunction with an interest only mortgage, or to provide family protection, a level term assurance policy provides life assurance that remains at the same level over the term of the plan. The initial level of life assurance should be the same as the mortgage, or be sufficient to protect the family, and the term of the policy consistent with the term of the mortgage or your dependents needs.

The monthly cost of a term assurance policy is normally fixed and guaranteed throughout the term of the policy. In the event of death the policy pays out a one off lump sum that is used to repay the mortgage debt or provide the capital to be used to support the family. There is no savings element to a term assurance policy and at the end of the term the policy simply expires without value.

Family Income Benefit
Used in conjunction with family protection, a family income benefit policy pays out a fixed monthly income on death, rather than a one off lump sum. The level of life assurance should be sufficient to provide a replacement monthly income to the family and the term of the policy should be consistent with your dependents needs.

The monthly cost of a family income benefit policy is normally fixed and guaranteed throughout the term of the policy. There is no savings element to a family income benefit policy and at the end of the term the policy simply expires without value.

Convertible Term Assurance
A convertible option can be added to all of the above. A policy containing a convertible option provides life assurance over a set term, but offers you the option during the term of the policy to convert, without any additional health checks, to a whole of life or endowment policy.

Questions and answers

Do these policies offer any savings or cash back?
No, these policies are designed to provide life assurance protection only and do not include any savings element. This keeps costs low and provides you with the flexibility to stop the policy, without penalty, as your circumstances and needs change.

Can I arrange cover for my partner and myself?
Yes, all of these policies will allow you to include two people under one policy. This is known as a joint life policy, and the life assurance will be paid in the event that either of you die during the policy term. A joint life policy only pays out the life assurance on the death of the first person; the policy is then automatically cancelled.

Will I need to attend a medical examination?
In most instances No. You may be asked to attend a medical examination if you have a health problem or the level of cover you require is high. If you are asked to attend a medical examination the insurance company will meet the cost. Each insurance company has different requirements, please contact us if you would like specific details.

Will my lender accept these policies?
Yes, all lenders will accept the level term assurance and mortgage protection policies that you can arrange through our online service. This allows you to compare the cost of your current policy against the cost of the policies available and apply in the knowledge that your lender will accept your new policy.

Can I include critical illness cover on these policies?
Yes, all of these policies also allow you to include the option of providing critical illness protection.

Can I arrange a policy that increases each year?
Yes, you can add an automatic increase option to level term assurance and family income benefit policies to ensure that your level of protection maintains its value in line with inflation.

Can I arrange a suitable trust for these policies?
Yes, all of the insurance companies will offer a selection of trusts. Please contact us for further information on the benefits of placing your policy into trust or to request a specimen trust document.

Ready to apply?
Use our online comparison and application facilities.

I need help
Call one of our independent financial advisors and they will guide you through the options available to you.