Product Type

Term Assurance. A life assurance policy without investment content, which lasts for a specified period, provides a guaranteed sum assured in the event of death within that period, and terminates at the agreed date.

Mortgage Protection. Generally refers to a type of reducing term assurance used in conjunction with a repayment mortgage. The idea is for the sum assured under the policy to reduce in line with the outstanding loan.

Family Income Benefit. Provides an income in the event of the death of a parent. These policies are designed to allow for the employment of a nanny or helper to look after the children while the surviving parent is at work, or provide an income should it be the principal breadwinner who dies. The policy will provide cover against death during a fixed term and will cease at the end of the term without value.

Benefit Type

Death Benefit Only. A payment of a tax-free lump sum upon the death of the life assured

Critical Illness Only. Also known as 'dread disease'. Such policies can be stand alone or written as an add on to a variety of other contracts e.g. whole of life. They will pay out a tax-free capital sum in the event of a qualifying illness being diagnosed e.g. certain cancers.

Death or Earlier Critical Illness. Pays out a tax-free cash lump sum, so that the life assured is protected for both death and critical illness. The policy pays out on the first event and then ceases.

Terminal Illness Cover. Insurance, which provides for a tax-free lump sum to be paid in the event of the life assured being diagnosed as suffering from a terminal illness.

Term In Years. The period for which an assurance policy provides protection.

Required Benefit Amount (£). The guaranteed amount paid on death under a life assurance policy.

Increasing Benefit? An option by which you can increase your benefit. It will be increased regularly, normally in line with inflation in order to match the real value of your Plan, with a resulting increase in premium.

Waiver of Premium? A policy option, which provides for the insurance company to waive payment of the policy premium in certain circumstances e.g. sickness or disability.

Life Assured. The person on whose life the life assurance policy is based.