Types Of Term Assurance Cover
Level Term Assurance
Level term assurance is an insurance
policy that you would take out if you wanted the amount of cover to
stay the same though the whole term of the policy and not decrease over
a period of time. A good reason for takign this cover out would be if
you were on an interest only mortgage, or if you wanted to ensure that
your mortgage and debts would be covered, and you would have extra money
to cover cost, for example for the funeral, or to live off for a period
of time shortly after the death of the insured.
Decreasing Term Assurance
Decreasing term assurance is a policy
that would start off at a certain amount of cover, but over time the
amount of cover would reduce. You are albe to vary the rate at which
the cover amount decreases at, usually 8% - 12%, however most insurance
companies allow you to choose at what rate the cover decreases subject
to their individual parameters. The benefit of a decreasing term
assurance policy would be to someone that was on a repayment mortgage
so their debts are reducing over a period of time in line with the amount
of cover on the term assurance policy. With this policy you are not
really going to see any extra money after your mortgage is cleard unless
you are insured for a considerable amount more than your debt, or you
opt for a higher rate at which the policy reduces compared to your debts.
Increasing Term Assurance
With increasing term assurance the potential
payout of ther term assurance policy increases by a small amount each
year to keep in line with inflation so that in 20 years time the amount
that is payed out is in line with the costs of living at that time.
This term assurance policy can be used for many different reasons. However
the level and the decreasing term assurance policies
are the more popular polies that people tend to take advantage of.
Convertable Term Assurance
With convertable term assurance the policyholder has
the optiion in the future to be able to switch their convertable term
assurance policy to another type of life insurance policy that will
more suit their needs, for example an endowment, or a whole of life
insurance policy without having to submit or prove any evidence of their
medicle history since first taking out the convertable term
assurance policy. This is a benefit if you think that a different
term assurance or life insurance policy benefits you now compared
to in the future.
Where to Gain more information For Term Assurance
If you are looking to recieve more information regarding
term assurance policies or you would like to know what it covers, and
who is able to apply for a term assurance policy then the internet
has many different resources for you to hand at no cost most of the
time. You can also refer your enquiry to a qulified insurance or mortgage
broker who will be more that happy to assist you in your enquiry. Advanced
Finance Limited are an independant mortgage and insurance brokerage
based in Essex, UK and are experts in term assurance for their clinets.
If you would like more information or you would like to apply for any
of the above term assurance policies then simply complete
the above form for a qualified mortgage or insurance broker to call
and help you with your needs, or you can call us on 08449 111 000 for
a free consultation and quotation today.
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