Granting for a moment that all things in life are predictable, death certainly cannot be among these. Should the worse happen, can you picture your spouse and dependents financially stable and protected when you’re gone? If you answer is no, then a life assurance quote is a necessity.
Life Assurance is often known to many people as Term Assurance or Life Insurance. The different types of life assurance can be separated into two major areas – cover in the event of death and cover in the event of illness. For these areas you can receive a lump sum and income.
Protection in the event of death
There are various types of Life Assurance to choose from and all will provide a lump sum payout in the event of the policy holder’s demise.
Level Term Assurance (LTA) pays the beneficiaries a fixed lump sum upon the policy holder’s death. The amount of coverage stays the same throughout the term of the policy.
Decreasing Term Assurance or DTA provides a diminishing lump sum throughout the entire policy term up to the time the coverage amount has decreased to zero by the end of the policy. It is usually applied as a cost-efficient way of covering a Capital & Interest Repayment Mortgage where the debt gets reduced throughout the mortgage term.
Mortgage Protection is an option where a life assurance policy is utilised specifically to pay for a mortgage debt. Getting life assurance quotes will determine the right type of mortgage cover you need.
Interest Only Mortgage, which requires only the repayment of loan interest to the mortgage company, is best protected by LTA or Level Term Assurance since the coverage amount remains unchanged over the entire term of the policy and hence reflect the constant level of the mortgage debt.
Capital and Interest Repayment Mortgage enables you to gradually pay off your loan each month. It is best covered by Decreasing Term Assurance (DTA) also referred to as a Mortgage Protection Assurance policy since the coverage amount gets in proportion with the decreasing mortgage debt.
Protection in the event of illness
Critical Illness Cover (CIC) will pay the person insured a lump sum if afflicted with any of the over 30 stipulated illnesses covered by the policy which usually range from cancer, heart attack and stroke to loss of limb, sight or hearing.
The lump sum can be applied in whatever manner you choose but is often used to cover medical expenses or to pay off a huge debt or a mortgage. It can even be utilised to pay for hosehold expenses and bills. It can be taken up along with a Life Assurance Policy so that a lump sum can be received in case the policy holder dies.
Income protection and replacement
Family Income Benefit (FIB) is a type of Life Assurance that pays out regular monthly income instead of a one-time lump sum. Having a regular income assures that the beneficiaries get a decent standard of living. It is also used to compensate for lost salary or to pay for fixed outgoings such as school fees.
Income Protection, previously known as Permanent Health Insurance (PHI), is an income replacement policy which provides for financial support in the event income is lost due to a policy holder’s long illness or disability. Use comparison websites to search for a life assurance quote for income protection and replacement.
policy is utilised specifically to pay for a mortgage debt. Getting life assurance quotes will determine the right type of mortgage cover you need.
Interest Only Mortgage, which requires only the repayment of loan interest to the mortgage company, is best protected by LTA or Level Term Assurance since the coverage amount remains unchanged over the entire term of the policy and hence reflect the constant level of the mortgage debt.
Capital and Interest Repayment Mortgage enables you to gradually pay off your loan each month. It is best covered by Decreasing Term Assurance (DTA) also referred to as a Mortgage Protection Assurance policy since the coverage amount gets in proportion with the decreasing mortgage debt.
Protection in the event of illness
Critical Illness Cover (CIC) will pay the person insured a lump sum if afflicted with any of the over 30 stipulated illnesses covered by the policy which usually range from cancer, heart attack and stroke to loss of limb, sight or hearing.
The lump sum can be applied in whatever manner you choose but is often used to cover medical expenses or to pay off a huge debt or a mortgage. It can even be utilised to pay for hosehold expenses and bills. It can be taken up along with a Life Assurance Policy so that a lump sum can be received in case the policy holder dies.
Income protection and replacement
Family Income Benefit (FIB) is a type of Life Assurance that pays out regular monthly income instead of a one-time lump sum. Having a regular income assures that the beneficiaries get a decent standard of living. It is also used to compensate for lost salary or to pay for fixed outgoings such as school fees.
Income Protection, previously known as Permanent Health Insurance (PHI), is an income replacement policy which provides for financial support in the event income is lost due to a policy holder’s long illness or disability. Use comparison websites to search for a life assurance quote for income protection and replacement.
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