Level / Decreasing Term Assurance

Term assurance is a life insurance policy that runs for a specified period of time. Payouts from term assurance are tax-free and will only be paid out to their estate or beneficiaries if the life assured dies within the policy term.

Level Term Assurance

This is a straightforward life assurance policy that guarantees a lump sum payment of the total sum assured if the policyholder dies within the policy term.

Decreasing Term Assurance

Typically used to cover a mortgage or other repayment loan, the sum assured decreases throughout the term of the policy in line with the remaining liability on the loan. The rate of decrease assumes an interest rate on a related mortgage of 10%. The policy terminates when the sum assured reaches zero.

Terminal Illness option

Both policies have a Terminal Illness option which, if selected, will pay out the total sum assured if you are diagnosed with a terminal illness and there are more than 18 months remaining until the policy expires. Once a payment has been made under this option, the policy ceases.

Suitable if you:

• are looking to protect a repayment mortgage
• want to leave behind a lump-sum to help your family to meet any outstanding debts
• only require cover for a fixed term (e.g. for the term of the associated repayment mortgage)