Level Cover – pays out up to a £500,000 single payment
What it could be used for. Level Cover means your family will get the same amount of money if you die while you're covered. The money can make a great difference to your family and their lifestyle if you’re not around to help provide for them. For instance, having money to help pay off the mortgage could help them keep their home.
How does Level Cover work? You decide how many years you want your policy to last. This is known as the policy term and the policy finishes at the end of this term. The policy pays out if you die or are diagnosed with a terminal illness that meets our definition during this time.
The amount you are covered for and the monthly payment you make stays the same throughout the term of the policy. This means you know how much you will pay each month and how much would be paid out.
Decreasing Cover – pays out up to a £500,000 single payment
What it could be used for. Sometimes known as mortgage life insurance, Decreasing cover could be used to protect a repayment mortgage.
How it works. You decide how many years you want your policy to last and it pays out if you die or are diagnosed with a terminal illness that meets our definition during this time.
How much you pay each month is typically less than for Level Cover, although, payments do stay the same over the term of the policy. However, for each year that goes by, a Decreasing Cover payout reduces by 7%. You can use it to cover a repayment mortgage or any other commitment that gradually gets paid.
If a claim is made during the policy term, any outstanding repayments on your mortgage or loan should be covered as long as your interest rate is not greater than 7%.
So you can use it to cover a repayment mortgage or any other commitment that gradually gets repaid.
What it could be used for. You can use Family Income Benefit to protect the monthly costs of your child's way of life when you die. The regular payments can help replace your income to maintain the lifestyle they’re used to. Everyday costs like the shopping, gas and electricity bills, car costs and more will keep coming in. So a regular income can help avoid financial hardship for your family.
How Family Income Benefit works. You can choose how long the policy lasts for and it pays out a regular income up to the maximum of £2,500 a month, if you die or are diagnosed with a terminal illness that meets our definition during this term. The income is paid from when a claim is accepted until the policy ends.
This type of policy gives you certainty that your family or children will get a regular income after you’re gone. For example, you may choose cover of £1,000 a month for nine years, until your child is 18 years old. So, if you died or were diagnosed with a terminal illness that meets our definition after five years, your family would receive £1,000 a month for the remaining four years of the policy.