Life Insurance – Overview

A plan designed to help financially protect the life assured and their family. It pays out the amount of cover on death or diagnosis of a terminal illness (if the life expectancy is less than 12 months) of the life assured during the term of the plan. The amount of cover remains the same throughout the plan term.

Premiums are guaranteed.

Amount of Cover

  • No minimum sum assured. Driven by minimum premium.
  • No set maximum sum assured - subject to negotiation with re-insurers, except if Critical Illness Cover or Critical Illness Extra are chosen, when maximum amount of cover will be:
    £3 million - if Specific Work Tasks definition is chosen under TPD, or
    £2 million - if Own Occupation definition is chosen under TPD.
  • The amount of cover remains level throughout the policy term.

Term

  • The minimum term allowed is 1 year (without Terminal Illness Cover)
  • The minimum term allowed is 2 year (if Critical Illness Cover or Critical Illness Extra are chosen).
  • The maximum term allowed is 50 years (or 40 years if Critical Illness Cover or Critical Illness Extra are chosen).

Age restrictions

  • The minimum age to take out a policy is 18. It is possible for a life of another policy to be taken out on a 17 year old by an adult with insurable interest. This policy can then be placed in an Absolute trust with the 17 year old as a beneficiary.
  • The minimum age at the end of the policy is 29.
  • The maximum age for buying a policy is 77 (or 67 if Critical Illness Cover or Critical Illness Extra are chosen).
  • The policy must end by their 90th birthday (or 70th birthday if Critical Illness Cover or Critical Illness Extra are chosen).

Premiums

  • Guaranteed
  • Choice of guaranteed or reviewable premiums if Life Insurance with Critical Illness Cover or Critical Illness Extra is chosen.
  • Payable monthly or annually by Direct Debit.

Benefits automatically included at no extra cost

If the policy is mortgage related then the following is also included

Other information

  • For joint life policies, benefit is paid on the first death.
  • Policies can be placed in trust.